Baiju Bhatt, co-founder of Robinhood, kicked off the new year by selling 228,645 shares of the company’s Class A stock for approximately $9.23 million. According to Investing.com, the shares were sold on January 3 at an average price of $40.37 per share. This sale was executed through Bhatt’s Living Trust under a pre-arranged Rule 10b5-1 trading plan, leaving him with no remaining Class A shares, though he still holds significant Class B shares.
Founded in 2013 by Bhatt and Vladimir Tenev, Robinhood revolutionized trading with its commission-free model and user-friendly platform. In Q3 2024, the company reported a 36% revenue increase, reaching $637 million. Major financial firms, including JPMorgan and Barclays, have upgraded Robinhood’s outlook due to its strong earnings and growing presence in cryptocurrency and derivatives markets.
Despite financial success, Robinhood recently faced regulatory scrutiny. The U.S. Securities and Exchange Commission (SEC) fined the firm $45 million for failing to maintain proper trading records and cybersecurity measures. General Counsel Lucas Moskowitz stated that the company is committed to compliance and innovation, expressing optimism about working with the SEC under a new administration.
A Stanford graduate in physics and mathematics, Bhatt co-founded Robinhood with Tenev after being inspired by the Occupy Wall Street movement. The duo aimed to democratize trading by eliminating commission fees. Bhatt stepped down as co-CEO in November 2020 to focus on product development, leaving Tenev as the sole CEO.
As Robinhood navigates growth and regulatory challenges, Bhatt’s recent stock sale marks a significant personal financial move amid the company’s evolving landscape.
