Robinhood's $605M Share Buyback from FTX

Robinhood to buy back $605.7M worth of shares from FTX's Sam Bankman-Fried. The deal involves 55.3M shares at $10.96 apiece.

Sep 1, 2023 - 15:20
Oct 19, 2023 - 12:43
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Robinhood's $605M Share Buyback from FTX
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Robinhood, the popular online brokerage platform, recently announced its decision to buy back shares worth $605.7 million from FTX's Sam Bankman-Fried.

Robinhood entered into a share repurchase agreement with the United States Marshal Service (USMS) to buy back stock from Sam Bankman-Fried's Emergent Fidelity Technologies. The shares were initially seized and later transferred to the custody of the U.S. government after FTX and Emergent filed for bankruptcy protection last year.

The U.S. District Court for the Southern District of New York approved the share repurchase agreement on August 28, as indicated in a U.S. Securities and Exchange Commission filing dated August 30.

The deal involves the sale of 55.3 million shares at $10.96 apiece. Robinhood's shares climbed more than 3% in premarket trading following the announcement.

Robinhood first disclosed its intention to buy back the stake in February and stated that the company's board had authorized it to pursue purchasing most or all of the stock.

Sam Bankman-Fried had initially revealed a 7.6% stake in Robinhood and expressed enthusiasm about Robinhood's business prospects. However, the collapse of FTX wiped out his fortune, and he has pleaded not guilty to fraud and conspiracy charges related to the collapse.

Just six months before FTX filed for bankruptcy, Bankman-Fried had no intention of taking control of Robinhood. He was more interested in potential partnerships, as he was "excited about Robinhood's business prospects and potential ways we could partner with them."

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.