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1:09 PM ยท 9 November 2022

Robinhood shares crash ๐Ÿ“‰ Fallen crypto exchange FTX still has stake in company?

Robinhood
Stocks
HOOD.US, Robinhood Markets Inc - class A
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Coinbase
Stocks
COIN.US, Coinbase Global Inc - class A
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MicroStrategy
Stocks
MSTR.US, MicroStrategy Inc - class A
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Shares of Robinhood (HOOD.US), a company that offers a popular cryptocurrency trading platform, lost 20% yesterday and are trading lower today before the open amid the acquisition of FTX by Binance and an influx of dire sentiment on the cryptocurrency market. The bankrupt FTX exchange still likely holds a significant stake in the company:

  • The bankruptcy of the FTX exchange has spilled over not only to the cryptocurrency industry but also to related Wall Street companies like Microstrategy (MSTR.US), Marathon Digital (MARA.US) and Coinbase (COIN.US), which is losing 5% today before the market opened;
  • Cryptocurrency exchange FTX as recently as yesterday held nearly 56 million Robinhood shares, equivalent to a 7.61% stake in the company;
  • It is unclear whether FTX has sold off its holdings however, it is possible that it will eventually have to do so amid a liquidity crisis. The exchange has pledged to cover 1:1 lost and suspended customer funds;
  • On the heels of the wave of SEC documents, the market recently began to speculate about the possible acquisition of a majority stake in Robinhood by FTX owner Sam Bankman-Fried. The company's share price reacted positively to the reports;
  • The news of FTX's sale to the Binance exchange came as an obvious surprise to the stock; previously Robinhood e shares had reacted positively to a possible increase in FTX's shareholder position;
  • Robinhood debuted on the stock exchange in July 2021, selling shares in an initial public offering at a price of $38. Today, the stock is trading in the neighborhood of $9. Robinhood's popularity peaked during the 2021 bull market, when a huge amount of money from fiscal aid packages in the United States hit the stock and cryptocurrency markets. In recent weeks, Robinhood reported nearly 9% job cuts. 

Wyprzedaลผ akcji Robinhood przyspieszyล‚a po tym jak Sam Bankman-Fried przekazaล‚ informacjฤ™ o negocjowanym przejฤ™ciu FTX przez Binance. ลนródล‚o: Bloomberg

Robinhood stock (HOOD.US), H1 interval. The relative strength index approached the vicinity of 30 points signaling an oversold condition. Source: xStation5

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