Robinhood sees 112% rise in crypto trading
Robinhood has reported a 112% year-over-year increase in cryptocurrency trading volume, reaching $14.4 billion in Q3 2024.
However, this surge comes amid a steady decline in trading activity compared to earlier in the year, when volumes peaked at $36 billion in Q1 before dropping to $21.5 billion in Q2.
Despite a slowdown, Robinhood’s transaction-based revenue grew, with a 72% increase from last year, totaling $319 million for Q3.
Cryptocurrency trading contributed $61 million, marking a 165% increase from the previous year but down from Q2’s $81 million.
Overall, Robinhood reported $637 million in total revenue and $150 million in net income for Q3, though both figures fell below analyst expectations.
The company’s earnings per share of $0.17 missed the Zacks Consensus Estimate of $0.18, and total revenue was 3.6% under the projected $661.2 million.
Other segments of Robinhood’s business saw robust growth.
Options trading revenue rose to $202 million, a 63% increase from last year, while equities trading earned $37 million, up 37%.
The company’s Assets Under Custody (AUC) also climbed 76% year-over-year to $152.2 billion, boosted by user deposits and valuation gains in stocks and crypto.
CEO Vlad Tenev expressed optimism about the results, crediting the company’s “product engine” for its performance.
Tenev also highlighted recent innovations, such as the launch of Robinhood Legend, a desktop platform, and upcoming features, including index options and futures.
Chief Financial Officer Jason Warnick acknowledged the quarter’s strength, noting that 36% of the company’s annual revenue growth bolstered the bottom line.
Since its crypto launch in 2018, Robinhood has expanded its offerings beyond Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) to include tokens like Litecoin (CRYPTO:LTC), Uniswap (CRYPTO:UNI), Avalanche (CRYPTO:AVAX), and Chainlink (CRYPTO:LINK), signaling its ongoing commitment to diversifying in the digital asset market.
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