Robinhood Reports 75% Increase in Crypto Trading for November: CEO Expects Revenue to Hit’ Nine Figures

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In November, Robinhood witnessed a significant increase in digital asset trading activity, marking an impressive surge of 75% compared to the previous month. Meanwhile, its stock trading volume remains flat.

Bitcoin Red-Hot Trajectory Boost Robinhood Month-to-Month Levels

Crypto trading platform Robinhood filed a Form 8-K to the US Securities and Exchange Commission (SEC) on December 5, substantially increasing its crypto national holdings for November 2023.

The reported volumes were approximately 75% higher than Robinhood markets for October.
During the third quarter of 2023, Robinhood observed a notable 55% decline in transaction-based revenues related to cryptocurrency, totaling $23 million. This decrease continued a trend in the preceding quarter.

The recent surge in activity marks a notable change for the financial platform, which had previously recorded a decline in revenue for digital asset trading in previous quarters.

The upturn coincides with a more extensive rally in the overall cryptocurrency market, notably influenced by significant price growth in Bitcoin (BTC), the world’s largest crypto by market capitalization.

BTC has recorded an 18.41% rise over the past month, driven by the growing optimism about the SEC’s potential approval of a spot Bitcoin exchange-traded fund (ETF).

Source: CoinMarketCap Bitcoin 30-Day Market Data

The asset has jumped from a previous price of $35,000 to $41,000 and recorded up to 140.49% over the past year, further fueling investor interest in the crypto space.

Source: CoinMarketCap Bitcoin 1 Year Market Data

Robinhood latest expansion trajectory also influenced the latest surge in the November market. The trading hub kickstarted its strategy to increase its global presence in crypto by launching a dedicated market space for United Kingdom traders and investors.

The improved trading volumes indicate renewed interest and increased participation in the cryptocurrency sector, potentially contributing to a shift in revenue dynamics for Robinhood in this domain.

Stock Metrics Remains Relatively Flat

Along with the surge in cryptocurrency trading volumes, Robinhood disclosed additional financial metrics.

The trading volumes for equities and options contracts remained relatively stable compared to the previous month. Notably, October saw a significant increase in crypto trading volume, reaching around $2.3 billion, nearly doubling the $1.2 billion recorded in September.

The trading platform also reported substantial customer engagement, with approximately $1.4 billion in net deposits for November, compared to $1.0 billion in October.

This rise in customer deposits reflects a growing confidence and increased participation among investors using the platform.

Following the release of these metrics, Robinhood’s stock (HOOD) recorded an increase of 0.6% in after-hours trading on December 4, with a press time price of $9.76 per share.


Source: TradingView HOOD Market Data

This positive market response underscores the impact of the company’s recent performance on its overall market valuation, indicating investor optimism in light of these encouraging financial indicators.

CEO Vlad Tenev Nine Figures Revenue Forecasts for Robinhood

In an exclusive interview with Yahoo Finance Live, Vlad Tenev, co-founder and CEO of Robinhood (HOOD), revealed efforts to influence and rejuvenate the online trading platform’s stock price.

Tenev expressed his strategic control over factors within his purview, with the “hope” that these initiatives would eventually be reflected in Robinhood’s stock performance.

Despite this proactive stance, Robinhood’s shares have declined by 1% over the past year, in contrast to the S&P 500’s 14% gain. Notably, the stock lags significantly behind its 2021 IPO price, currently at $9.76 per share, approximately 75% lower.

In comparison, competitors such as Charles Schwab (SCHW) and Morgan Stanley (MS), which are involved in integrating major acquisitions, have experienced drops of 23% and 10%, respectively, during the same timeframe.

Tenev’s emphasis on overseeing the platform’s stock trajectory underscores the company’s ongoing efforts to regain investor confidence and improve its market standing.

He further noted that more interest from retail crypto investors and rising stock prices could propel the platform to reel “nine figures” in annual revenue.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.