The agency reported 0 Class A shares in Robinhood (US:HOOD) as of Sep. 30, 2023, down from 612,214 shares from its earlier submitting on Aug. 4.
Robinhood, identified for its commission-free trades and user-friendly interface, had beforehand attracted a big early funding from Alphabet. Nonetheless, Alphabet’s determination to sever ties with Robinhood is the end result of progressive reductions in its stake — a drastic, practically 90% reduce had already been made in months prior.
As reported by Reuters, Robinhood’s market attraction started declining because of the Federal Reserve’s charge hikes final 12 months, leading to unfavorable financial circumstances. This, coupled with a slowdown in buying and selling, resulted within the app falling wanting Wall Avenue estimates for income in its third-quarter earnings report. Consequently, Robinhood’s buyer base appeared much less energetic.
Regardless of rocky revenues, Robinhood has been forging forward with its strategic progress plans. It lately unveiled plans to introduce cryptocurrency buying and selling within the European Union following regulatory approval. This EU crypto launch is a part of the agency’s broader progress technique and is ready to comply with the upcoming launch of brokerage providers within the UK.
Nonetheless, all these formidable enlargement plans coexist with challenges. The buying and selling app’s cryptocurrency transaction income fell 55% year-on-year to $23 million in Q3 2023. But, regardless of this dip, Robinhood stays steadfast in its mission to supply crypto merchandise internationally to broaden its buyer base.
Moreover, the dimensions of Robinhood’s involvement within the cryptocurrency market is immense. Per an Aug. 30 report by Arkham Intelligence, Robinhood held the fifth-largest account on the Ethereum blockchain and the third-largest Bitcoin deal with, the latter of which holds greater than $4.3 billion in Bitcoin.
The agency has additionally had success in reacquiring its personal shares that had been purchased 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 Constancy Applied sciences for $605.7 million. This deal got here after the U.S. authorities had taken custody of Bankman-Fried’s Robinhood shares when FTX and Emergent filed for chapter safety the earlier 12 months.