Robinhood Markets Inc. intends to buy back 55 million of its shares from Emergent Fidelity Technologies, which had acquired the shares with loans from Alameda Research, the brokerage arm of FTX.
The shares, valued at over $550 million, are the subject of a creditor dispute in the FTX bankruptcy case.
The U.S. Department of Justice has seized the shares and Robinhood is in discussions with the DOJ about the proposed purchase.
Robinhood expressed confidence in its business in its earnings report and stated that the proposed purchase “underscores the confidence the Board of Directors and management team have in our business”.
In the fourth quarter of 2022, Robinhood’s cryptocurrency revenue decreased by 24% to $39 million compared to the previous quarter.
