SBF’s Robinhood stock stash: What is Emergent Fidelity Technologies, which holds Sam Bankman-Fried’s HOOD shares?
15:52, 15 November 2022
Sam Bankman-Fried, FTX’s founder and ex-CEO, bought a 7.6% stake in the Robinhood brokerage earlier this year, but there are now fears from HOOD investors about its exposure to the bankrupt cryptocurrency exchange.
The founder bought approximately 56 million shares or $648m at the time of filing. This purchase was completed through Bankman-Fried’s own investment company titled Emergent Fidelity Technologies.
Robinhood’s stock price plunged during the beginning of FTX’s collapse. However, HOOD is starting to recover as Emergent Fidelity Technologies was not included in FTX Group’s bankruptcy filing.
Robinhood (HOOD) share price chart
What is Emergent Fidelity Technologies?
Emergent Fidelity Technologies is Sam Bankman-Fried’s holding company located in Antigua and Barbuda. It said in the Robinhood filing: “The principal business of Emergent is the making of investments in securities and other assets.”
At the time of writing, Emergent’s only investment is the HOOD shares, according to its Crunchbase profile.
After Bankman-Fried bought the shares, Bloomberg reported he was considering a takeover of the brokerage. The entrepreneur was exploring options to acquire Robinhood with his cryptocurrency exchange FTX.
However, this never materialised and FTX does not directly hold any HOOD shares.
While FTX eventually collapsed following a liquidity crunch, Emergent appears to be unaffected at the time of writing. It was not listed as one of the 134 companies on FTX Group’s Chapter 11 bankruptcy filing.
Robinhood’s FTX exposure
As the FTX crisis began to unfold, HOOD’s stock plummeted. The brokerage’s share price opened at $11.93 on 8 November and stooped to a low of $8.16 the following day, according to Capital.com’s trading platform.
This fall followed speculation that Bankman-Fried would have to sell his HOOD shares to release personal liquidity.
But as FTX revealed Emergent was not one of its bankrupt companies, HOOD’s stock price began to recover.
As of 15 November, it had recovered to $10.17 and was down 12% over the past month, according to Capital.com.
Markets in this article
Related topics
