1 year ago
Alphabet Inc., Google‘s genitor company, has divested itself of 100% of its holdings successful Robinhood Markets, per a Nov. 9 13F-HR filing.
The steadfast reported 0 Class A shares successful Robinhood (US:HOOD) arsenic of Sep. 30, 2023, down from 612,214 shares from its erstwhile filing connected Aug. 4.
Robinhood, known for its commission-free trades and user-friendly interface, had antecedently attracted a important aboriginal concern from Alphabet. However, Alphabet’s determination to sever ties with Robinhood is the culmination of progressive reductions successful its involvement — a drastic, astir 90% chopped had already been made successful months prior.
As reported by Reuters, Robinhood’s marketplace entreaty began declining owed to the Federal Reserve’s complaint hikes past year, resulting successful unfavorable economical conditions. This, coupled with a slowdown successful trading, resulted successful the app falling abbreviated of Wall Street estimates for gross successful its third-quarter net report. Consequently, Robinhood’s lawsuit basal appeared little active.
Charging ahead
Despite rocky revenues, Robinhood has been forging up with its strategical maturation plans. It precocious unveiled plans to present cryptocurrency trading successful the European Union pursuing regulatory approval. This EU crypto motorboat is portion of the firm’s broader maturation strategy and is acceptable to travel the imminent motorboat of brokerage services successful the UK.
However, each these ambitious enlargement plans coexist with challenges. The trading app’s cryptocurrency transaction gross fell 55% year-on-year to $23 cardinal successful Q3 2023. Yet, contempt this dip, Robinhood remains steadfast successful its ngo to connection crypto products internationally to broaden its lawsuit base.
Furthermore, the standard of Robinhood’s engagement successful the cryptocurrency marketplace is immense. Per an Aug. 30 report by Arkham Intelligence, Robinhood held the fifth-largest relationship connected the Ethereum blockchain and the third-largest Bitcoin address, the second of which holds more than $4.3 billion successful Bitcoin.
The steadfast has besides had occurrence successful reacquiring its ain shares that had been bought by Sam Bankman-Fried. On Sep. 1, 2023, Robinhood struck a deal with the U.S. Marshal Service to repurchase shares seized from Bankman-Fried’s Emergent Fidelity Technologies for $605.7 million. This woody came aft the U.S. authorities had taken custody of Bankman-Fried’s Robinhood shares erstwhile FTX and Emergent filed for bankruptcy extortion the erstwhile year.
The station Google genitor institution Alphabet dumps past of its Robinhood shares appeared archetypal connected CryptoSlate.
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