The HOOD stock hits monthly lows as investors fear the liquidation of 56 million shares. Whereas other crypto stocks like COIN and MSTR continue the downtrend.
The bears tighten their holds over the crypto stocks as Coinbase (COIN), MicroStrategy (MSTR), and Robinhood (HOOD) continue the downtrend.
Recently in a court filing, Sam Bankman-Fried admitted to borrowing around $546 million from Alameda Research to acquire a 7.6% stake in stocks and crypto investing platform – Robinhood.
The shares’ custody lies with a special purpose holding company, Emergent Fidelity Technologies, which is owned 90% by Sam Bankman-Fried and 10% by Gary Wang. There is a fear that these HOOD shares might get liquidated.
Sam Bankman-Fried Used Customers’ Fund to buy HOOD Shares?
An individual investor, Yonathan Ben Shimon, is one of the many creditors claiming ownership of HOOD Shares. He claims that FTX possibly used funds from investors to acquire a 7.6% stake in Robinhood.
“Emergent acquired a 7.6% shareholding in Robinhood for about US$650 million possible using funds improperly diverted from those invested by me and others with FTX. I know nothing regarding the source of the funds used to acquire the 7.6% interest in Robinhood beyond the fact that it was allegedly working capital,” reads the court document.
However, Sam Bankman-Fried explains that he sourced funds from Alameda to buy HOOD stocks along with the co-founder of FTX, Gary Wang.
The community believes it was customers’ funds the entire time, as Sam Bankman-Fried is charged for diverting funds to make dubious investments through Alameda.
Crypto Stocks Continue the Sell-Off
Amidst the chaos around ownership of HOOD shares, the price is trading around monthly lows. HOOD is trading at $7.73, more than 90% down from its all-time high of $85.
Not just HOOD, bulls are struggling to take control of other crypto-related stocks as well. COIN is trading at its all-time low of $32.66. The stock was already down over 90% from its all-time high and fell a further 28% this month. The price of MicroStrategy stock is down more than 25% this month.
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Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/coin-and-hood-hit-new-monthly-lows/