Add as a preferred source on GoogleRobinhood Fund Invests $30 Million in Erebor Bank Preferred Shares
The deal closed Sept. 17. Erebor’s approved business plan includes customers in payment systems and virtual currency markets, among other sectors.
Robinhood Ventures Fund I (NYSE: RVI) invested $30 million in Erebor Bank preferred shares, taking a stake in a newly chartered U.S. bank whose deposits have grown above $7 billion.
The purchase closed Sept. 17 and was announced Oct. 21. Erebor received its federal national bank charter on Feb. 6. Its approved business plan covers customers in technology, payment systems, investment and defense, including virtual currency market participants.
Erebor’s deposits exceeded $7 billion, compared with $4.06 billion at June 30 and $1.10 billion at March 31. The bank’s second-quarter deposit growth brought its June balance to nearly four times the March figure.
RVI began trading on the New York Stock Exchange in March. The closed-end fund holds a concentrated portfolio made up primarily of private companies and is open to retail investors without accreditation requirements or a minimum investment.
The preferred shares represent an investment in Erebor separate from its deposit accounts. They are not insured by the Federal Deposit Insurance Corporation (FDIC).
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.