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Robinhood shares were initially priced at $38, however, closed the day at around $34.82, they had dropped by almost 10 percent on the first day of trading.
Leading investment management firm Ark Investment through its ARKK Funds has paid over $1 million to acquire 1,297,615 shares of popular stock and crypto trading platform Robinhood immediately after it made its debut in the NASDAQ exchange.
Robinhood Markets Inc (NASDAQ: HOOD) had earlier revealed in a press release that its shares would begin trading on the Nasdaq Global Select Market on July 29, 2021, under the ticker symbol “HOOD.” The offering is expected to close on August 2, 2021, subject to the satisfaction of customary closing conditions.
The shares were initially priced at $38, however, closed the day at around $34.82, they had dropped by almost 10 percent on the first day of its trading. A report from Reuters stated that “only 16 of the 99 U.S.-listed companies that were worth at least $10 billion when they went public declined on their first day,” an indication that the firm stock had performed poorly on its first day.
Per a previous report from Coinspeaker, Robinhood would be using the raised funds from the stocks “for working capital, capital expenditures, funding its anticipated tax obligations related to the settlement of RSUs, and general corporate purposes including increasing its hiring efforts to expand its employee base, expanding its customer support operations and satisfying its general capital needs.”
You will recall that Robinhood was in the news earlier in the year for the role it played in the GameStop saga. Regulators in the United States had fined the platform $70 million as its action had hurt its users.
Away from that, Robinhood also recently introduced a new feature in its app for users. The new feature is geared towards protecting these users from suffering losses due to the high volatility rate attached to the crypto industry. It is expected that it would help to “skip recurring orders or buy less than the chosen amount.”
Interestingly, this is not the first time that the Cathie Wood-led firm would be investing in a crypto-related firm. Earlier in the year, the New York-based investment firm invested in Coinbase stocks and also recently piled into the stocks of Jack Dorsey-led Square.
ARK had purchased over 200,000 shares from Square’s stock using its ARKK Funds while also citing Square’s recent inventions and intentions in the crypto space as a deciding factor in its decision-making process.