Robinhood gets a steep 60% discount on $170 million Ziglu acquisition according to key market indicators. As we said due to market circumstances, stock and cryptocurrency investment platform Robinhood allegedly received a 58% discount on its $170 million offer to acquire crypto exchange Ziglu.
Robinhood Gets A Steep 60% Discount – Ziglu Acquisition
The first offer from Robinhood arrived in April, but according to numerous internet publications around August 17, the business amended its offer to $72.5 million due to bad market circumstances. On August 18, Ziglu CEO Mark Hipperson apparently accepted the offer.
According to reports, Robinhood called attention to a number of issues, including the bear market, the collapse of numerous significant centralized crypto lenders, including BlockFi, Celsius, and Voyager, as well as other macroeconomic concerns like the Russian invasion of Ukraine.
According to CoinGecko, the overall crypto market valuation has decreased by roughly 40% since April, putting enormous pressure on Robinhood to reconsider the amount it was ready to spend on UK-based Ziglu.
Ziglu is also one of the top 50 unsecured creditors of the insolvent cryptocurrency lender Celsius. Ziglu’s funds on Celsius might be frozen forever because the lender is rapidly running out of capital and has been running a multi-billion dollar deficit while going through bankruptcy procedures.
The purchase of Ziglu by Robinhood is part of the company’s aspirations to make inroads into the UK market, but the Robinhood team, led by CEO Vlad Tenev, may have to start again if Ziglu rejects the latest offer.
The new terms, however, appear to have put Ziglu between a rock and a hard place. In a letter to investors, founder Mark Hipperson claimed that if the first $170 million investment was terminated, his business would be left in a very tough market, and undercapitalized for the years ahead.
A Ziglu spokesperson did not immediately reply to a request for comment. Despite his reservations about the reduced number, Hipperson told fintech news source Altfi that they feel the amended proposal is the best and only logical road ahead for the firm.
Ziglu’s most recent round of fundraising concluded in November, raising the company’s share price to $58.12. The new agreement reduces the share price to $34.04.
If you invested in Ziglu via Seedrs, I bet you're pretty pissed off right now.
— Mr Omneo (@mr_omneo) August 15, 2022
Ziglu Overview
Ziglu is a company that provided a digital platform, enabling customers to exchange fiat currency for cryptocurrency. Basically, it was, and in some respects still is a crypto exchange. It was founded in London in 2018, by founders Mark Hipperson, Niall McConnell, and Philip Goffin.
Read the latest crypto news.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post