Robinhood’s shares jumped 7% in working hours after working hours after brokerage was appointed to S&P 500.
The main dishes to remember:
- Robinhood’s shares jumped 7% after being added to the S&P 500, joining the index on September 22.
- The strategy, despite an assessment of $ 95 billion and $ 70 billion in Bitcoin holdings, has been excluded from the reshuffle.
- Robinhood posted a good profit from the second quarter, with $ 989 million in income and $ 386 million in profits.
Robinhood (Hood) closed just above $ 101 and exceeded $ 108 in extended exchange after the announcement.
The company’s share price has climbed more than 150% the year at the start, driven by solid profits and growing retail interests in shares and crypto.
Robinhood to join S&P 500 on September 22
Robinhood will officially join the index on September 22, alongside Ad-Tech Applovin, according to S&P Dow Jones Indices.
While Robinhood celebrates its inclusion, the strategy, the Bitcoin cash company formerly known as Microstrategy, has been left from the list, despite the satisfaction of the market capitalization of $ 20 billion in S&P.
The strategy, which now holds more than $ 70 billion in Bitcoin, saw its shares drop by 3% in after-hour after the announcement.
The omission surprised certain observers, given the evaluation of $ 95 billion in the strategy and its pioneer role in bringing the Bitcoin to public balances.
Based in Tysons Corner, Virginia, the company has become synonymous with the adoption of business cryptography.
The reshuffle of the S&P intervenes in the middle of the growing institutional interest for digital assets and a more favorable political environment.
Earlier this year, Coinbase was added to the S&P index, pointing out increasing recognition of cryptocurrency companies in traditional financial markets.
Robinhood’s solid fundamentals have further fueled its rally. In the second quarter, the company recorded $ 989 million in revenues, up 45% from one year to the next, defeating the estimates of Wall Street.
Net profit reached $ 386 million, with a profit per share of $ 0.42, well above analysts forecasts.
Crypto negotiation revenues have reached $ 160 million, almost a doubling of annual shift, but down compared to the $ 252 million in the previous quarter.
Meanwhile, income from the negotiation of options and shares have reached $ 265 million and $ 66 million, respectively, which makes Robinhood’s most important options.
Robinhood continues Nevada, New Jersey regulators on event contracts
Last month, Robinhood Derivatives brought legal action against regulators of Nevada and New Jersey, accusing the States of unjustly blocking its entry into the contract of sporting events, despite the recent decisions of the Federal Court in favor of the Kalshi rival platform.
The firm said that it had started to offer event contracts in both states after the federal judges ruled earlier this year that regulators from Nevada and New Jersey could not enforce their prohibitions against Kalshi, which offers contracts regulated by the Commodity Futures Futures Trading Commission (CFTC).
Robinhood argued that regulators have ignored these decisions and continued to threaten application measures, creating an uneven playground.
“If state regulators are allowed to act against Robinhood but not Kalshi, then Robinhood will lose in the space of sporting events,” said the company in its deposits.
Meanwhile, Robinhood has been the subject of regulatory fire in the EU after launching tokenized stock products linked to private companies such as Openai and SpaceX.
The Bank of Lithuania confirmed that it was investigating the legality and disclosure of investors linked to these “shares” based on blockchain, which was launched on June 30.
Openai has publicly disowned any connection, declaring that she had never approved tokens and warning investors to be careful.
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