Alphabet Inc., Google‘s parent company, has divested itself of 100% of its holdings in Robinhood Markets, per a Nov. 9 13F-HR filing.
The firm reported 0 Class A shares in Robinhood (US:HOOD) as of Sep. 30, 2023, down from 612,214 shares from its previous filing on Aug. 4.
Robinhood, known for its commission-free trades and user-friendly interface, had previously attracted a significant early investment from Alphabet. However, Alphabet’s resolution to sever ties with Robinhood is the fruits of progressive reductions in its stake — a drastic, almost 90% lower had already been made in months prior.
As reported by Reuters, Robinhood’s market attraction started declining as a result of Federal Reserve’s fee hikes last 12 months, leading to unfavorable financial situations. This, coupled with a slowdown in buying and selling, resulted within the app falling brief of Wall Road estimates for income in its third-quarter earnings report. Consequently, Robinhood’s buyer base appeared much less lively.
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 component of the agency’s broader progress technique and is ready to observe the approaching launch of brokerage providers within the UK.
Nonetheless, all these formidable growth 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 size 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 tackle, the latter of which holds more 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 take care of 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.