Robinhood secures 58% discount on Ziglu acquisition

The online broker Robinhood has agreed to cut the purchase price of the Ziglu startup by 58% due to deteriorating market conditions. AltFi reports this, citing investor documents.

Ziglu operates a crypto wallet with a linked bank card.

Robinhood cited the crypto winter, problems BlockFi, Celsius and Voyager, as well as macroeconomic factors.

In April, the parties agreed on a deal worth $170 million. It will now amount to $72.5 million.

Ziglu is among the 50 largest unsecured creditors of Celsius.

The acquisition of the startup is part of the online broker’s plans to push into the UK market.

In a letter to investors, Ziglu founder Mark Hipperson said that if the deal falls through, the startup would be undercapitalised in an extremely difficult market.

Based on negotiations between the board and management and other considerations, we believe that the revised offer — the best and only sensible option for the company,

Earlier, Robinhood CEO Vlad Tenev, at an analyst conference, ruled out the takeover of the online broker and допустил покупки различных стартапов. As of June 30, the company had $6 billion in cash and cash equivalents.

Previously, Robinhood announced a 23% staff cut.

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