{"id":55915,"date":"2023-09-01T19:20:35","date_gmt":"2023-09-01T23:20:35","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/robinhood-spent-more-than-600-million-to-buy-back-shares-the-u-s-government-seized-from-ftx-founder-sam-bankman-fried\/"},"modified":"2023-09-01T19:20:38","modified_gmt":"2023-09-01T23:20:38","slug":"robinhood-spent-more-than-600-million-to-buy-back-shares-the-u-s-government-seized-from-ftx-founder-sam-bankman-fried","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=55915","title":{"rendered":"Robinhood spent more than $600 million to buy back shares the U.S. government seized from FTX founder Sam Bankman-Fried"},"content":{"rendered":"
\n

Shares of Robinhood Markets Inc. charged higher Friday after the trading-app operator disclosed that it has bought back the 55.3 million shares that had been seized by the U.S. government.<\/p>\n

The company disclosed in an 8-K filing with the Securities and Exchange Commission that it paid about $605.7 million for the shares, which were being held by the U.S. Marshal Service. That represented 6.1% of the company\u2019s market capitalization of $9.93 billion at Thursday\u2019s close when the purchase closed.<\/p>\n

\n

The shares
\n HOOD,
\n +2.02%<\/bg-quote>
\n were paid for using corporate cash available on Robinhood\u2019s balance sheet.<\/p>\n

The stock rallied Friday and was up 3.4% in midday trading. It has run up 11.8% since closing at a seven-week low of $10.07 on Aug. 17.<\/p>\n

The shares were originally acquired through Emergent Fidelity Technologies Ltd. by Sam Bankman-Fried, who founded the failed cryptocurrency exchange FTX, which collapsed last year.<\/p>\n

The U.S. Department of Justice had moved to seize Bankman-Fried\u2019s stake in Robinhood, which was reported to total about 56 million shares, in early January. Bankman-Fried was jailed in early August.<\/p>\n

In February, Robinhood said it would pursue the purchase of most or all of the 55 million shares that Emergent Fidelity Technologies had bought in May 2022.<\/p>\n

The $605,694,411.59 Robinhood paid for the 55,273,469 shares it purchased from the government implies a price of about $10.96 a share.<\/p>\n

Based on the Jan. 4, 2023, closing price of $8.26, when reports surfaced that the Justice Department was moving to seize Emergent Fidelity\u2019s stake, the 55.3 million shares Robinhood purchased were valued at about $456.6 million.<\/p>\n

Robinhood\u2019s stock has soared 38.4% to date in 2023, while the S&P 500 index
\n SPX,
\n +0.18%<\/bg-quote>
\n has gained 17.3%.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Robinhood Markets Inc. charged higher Friday after the trading-app operator disclosed that it has bought back the 55.3 million shares that had been seized by the U.S. government. The company disclosed in an 8-K filing with the Securities and Exchange Commission that it paid about $605.7 million for the shares, which were being […]<\/p>\n","protected":false},"author":1,"featured_media":55916,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-55915","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nRobinhood spent more than $600 million to buy back shares the U.S. government seized from FTX founder Sam Bankman-Fried | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of Robinhood Markets Inc. charged higher Friday after the trading-app operator disclosed that it has bought back the 55.3 million shares that had\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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