Non Cult Crypto News

Non Cult Crypto News

in

Robinhood doubles crypto trading volume, but shares dip 12% on Q3 earnings

Robinhood also reported a 76% year-on-year increase in assets under custody, attributed to rising crypto valuations.

COINTELEGRAPH IN YOUR SOCIAL FEED

Shares in trading platform Robinhood fell 12.4% after-hours after its third-quarter earnings missed Wall Street estimates, though crypto trading volume and revenues doubled year-on-year.

Robinhood’s Q3 results show that crypto trading volumes and crypto revenue soared 112% and 165% year-on-year in the third quarter, coming to $14.4 billion and $61 million, respectively, helping the firm swing back into profit.

However, the $150 million net income and $637 million revenue Robinhood posted in Q3 still missed industry estimates, and consequently, HOOD shares fell over 12.4% in after-hours trading, Google Finance data shows.

Robinhood’s $0.17 earnings per share missed the Zacks Consensus Estimate of $0.18, while its reported revenue fell 3.6% from Zacks’ $661.2 million estimate.

HOOD’s change in share price on Oct. 30 (including after-hours). Source: Google Finance

Despite missing industry estimates, Robinhood’s chief financial officer Jason Warnick is still pleased with how the firm has fared so far this year:

“When we reflect on our revenue so far this year, it feels good that our last three quarters are the three highest in company history.”

While Robinhood’s crypto trading volume increased 112% from Q3 2023, it fell considerably from $36 billion in Q1 2024 and $21 billion in Q2 2024.

Crypto revenue also fell from $81 million in the previous quarter.

The firm’s assets under custody also increased 76% year-on-year to $152.2 billion.

It partially attributed rising crypto valuations to this as its total crypto assets under custody increased to $19.45 billion — up 32.3% from $14.7 billion in Q4 2023.

Robinhood’s change in assets under custody by asset type since Q3 2022. Source: Robinhood

Related: Robinhood launches US presidential elections bets for Harris and Trump

In June, Robinhood agreed to acquire the Bitstamp crypto exchange in a $200 million deal that would enable it to serve institutional investors in the United States.

The deal is still subject to regulatory approval and is expected to be finalized in the first half of 2025.

Robinhood launched its cryptocurrency unit in February 2018, offering Bitcoin and Ether (ETH) trading in several states. 

It has since expanded its offering for Litecoin (LTC), Uniswap (UNI), Avalanche (AVAX), Chainlink (LINK) and several other tokens.

Despite HOOD’s fall in after-hours trading, it is still up 128% so far in 2024, trading at $28.21.

Magazine: Bitcoiners are ‘all in’ on Trump since Bitcoin ’24, but it’s getting risky

This article first appeared at Cointelegraph.com News

What do you think?

Written by Outside Source

MicroStrategy to raise $42B to buy Bitcoin in ‘21/21 plan’

Crypto apps see malicious popups after Ace Drainer hacks animation library

Back to Top

Ad Blocker Detected!

We've detected an Ad Blocker on your system. Please consider disabling it for Non Cult Crypto News.

How to disable? Refresh

Log In

Or with username:

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website.

Add to Collection

No Collections

Here you'll find all collections you've created before.