Robinhood Stock Jumps Amid Crypto Linked Share Purchase Deal
Robinhood is steadily climbing the ranks in the crypto game as it owns the world’s third-largest Bitcoin wallet. It is evident that Robinhood is on the path of growth, and there is no going back. The acquisition of these shares comes after Robinhood announced in February 2023 that they will pursue acquiring the shares in the possession of the U.S. government.
Also Read: Bitcoin Whales Back in Action, Did Robinhood Buy $3B Worth of BTC?
What Are The Shares That Robinhood Will Buy From USMS?
The U.S. government acquired 55 million Robinhood stock, classified as Class A common stock, after Sam Bankman Fried filed for the infamous crypto exchange FTX’s bankruptcy. Initially, the shares were registered under Emergent Fidelity Technologies, owned by Sam Bankman Fried and FTX co-founder Gary Wang.
According to the official filing with the Securities and Exchange Commission (SEC), “The sale of the Shares was approved by the United States District Court for the Southern District of New York pursuant to an interlocutory sales order (the “Order”), granted on August 28, 2023, providing for the sale of the Shares to the Company free and clear of any claims, interests, liens and encumbrances.”
Recommended Articles
Crypto Presale Projects For 2023 To Invest; Updated List
Must Read
Best Crypto Trading Bots List 2023
Must Read
Crypto Telegram Channels List 2023 [Updated]
Must Read
Top 10 Web3 Games To Explore In 2023; Here List
Must ReadWhat Is the Share Purchase Priced At?
In the official filing with the SEC, the agreement states that the USMS will sell the share set at approximately $10.96, determined through the average per-share price of Robinhood’s share over five consecutive trading days before August 13, 2023. As per the filing, the date used for calculating the price was “the date on which the United States filed a motion under seal with the United States District Court for the Southern District of New York requesting the Order.”
The total amount for purchasing 55 million shares at $10.96 per share comes at a whopping $605,694,411.59, or approximately $605.7 million. In the official statements, Robinhood will make the purchase through the corporate cash available from its balance sheet. The acquisition deal shows Robinhood’s financial capability along with its commitment to uplift its market position and create value for its shareholders.
Also Read: Robinhood Wallet Now Supports Bitcoin, Dogecoin; Ethereum Swaps Enabled