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Online trading platform, Robinhood, has seen its crypto revenue jump more than 160% according to its latest earnings report.
In its Q2 financial statement, Robinhood revealed crypto transaction-based revenue increased 161% year-on-year to $81 million, which is more than double its revenue from equities of $40 million.
Robinhood holds $20.6 billion in crypto assets under custody, which is a 57% year-on-year increase.
Trading volume also increased to 137% from Q2 2023 to $21.5 billion but the figure marked a 40% drop from Q1 2024.
However, Robinhood faced a 27% reduction in total customer trades and reported an 18% fall in the average notional trading volume per trader.
Robinhood said the drop in monthly active users over the quarter was due to the drop in crypto prices
“When the crypto markets are hot there's a huge immediate spike in monthly active user engagement metrics but then when crypto cools down that tends to drop more,” a Robinhood spokesperson said.
Robinhood's record revenue of $682 million beat estimates of $643.34 million while profits of 21c per share also outperformed expectations of 15c. Its stock price is up more than 3% in after-hours trading.
"This quarter, we kept up the pace with rapid product launches and a relentless drive to provide top value for our customers," said Vlad Tenev, CEO and Co-Founder of Robinhood. "With Robinhood Gold reaching 2 million subscribers, we're witnessing the flywheel accelerate."
Last month, Robinhood revealed it was looking to offer cryptocurrency futures in the US and Europe in the coming months.
The move followed the exchange's $200 million acquisition of Bitstamp, which is expected to be completed next year. Robinhood will leverage the Luxembourg-based crypto exchange’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe. CME-based futures for Bitcoin and Ether are also being considered in the US.
However, a spokesperson stated, "We have no imminent plans to launch these offerings," adding that the discussions are ongoing.
Blockhead
Acquiring Bitstamp marked a major step for Robinhood in its quest to become a one-stop shop for all things investing, including cryptocurrencies.
“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles," said Johann Kerbrat, general manager of Robinhood Crypto.
