Robinhood’s Crypto Revenue Dropped by 12% Last Quarter
As the valuation of cryptocurrencies wanes across the board, so do the revenues of platforms dealing with them.
Although primarily a stock trading platform, Robinhood added crypto to its portfolio back in early 2022. At the time, over 1.2 million people were on the waiting list to get a piece of the digital asset pie.
Unfortunately, the crypto market took a tumble shortly after – and the company’s revenues did too.
Stocks Are Up, Crypto Is Down
According to Robinhood’s quarterly earnings report, the company is still overall in the green, noting a 14% increase in total net revenues, bringing the total to $361 million.
The lion’s share comes from transaction-based revenue across stocks, options, and crypto. In total, these sources brought in $208 million over the past few months – a 3% increase compared to the last quarter.
However, there’s a catch. Looking at the report, we can see that the revenue from options and equities increased by 10% and 7%, respectively, for a total of $155 million.
Unfortunately, Robinhood’s balance sheet is marred by a 12% decrease in crypto-related revenue. Overall, the platform’s portfolio of digital asset services only brought in $51 million over the past quarter.
Robinhood Optimistic on Crypto Despite Current Results
Although traders have seen better days, Robinhood leadership seems to have accepted that the poor results of the crypto services are most likely due to the overall state of the market.
“We’re certainly a participant in the broader crypto market, and when overall trading volumes in crypto are down, we see that reflected in the activity on Robinhood as well.”
As a result, more investments will reportedly be made into Robinhood’s crypto sector in preparation for future profits. Addressing the company’s board of investors, CEO Vlad Tenev hinted at upcoming investments into the crypto sector.
Among the improvements announced by Tenev are quality-of-life enhancements to Robinhood wallets and support for additional cryptocurrencies. The exec also suggested an upcoming “Learn and Earn” program for crypto investors.
“We’re creating a new free educational program called Learn and Earn that gives our customers the ability to earn crypto simply by learning about it. We’re excited to roll this out and give our customers even more reasons to engage with our awesome educational content.”
The decision to remain bullish on crypto and prepare the terrain for better days mirrors the attitude of industry leaders like CZ or Bankman-Fried, who have been busy preparing for the next crypto boom.
The post Robinhood’s Crypto Revenue Dropped by 12% Last Quarter appeared first on CryptoPotato.
