Robinhood experienced a significant increase in its crypto trading volume, reporting a 112% rise year-on-year, reaching $14.4 billion in Q3 2024. Alongside this, crypto revenue surged 165% to $61 million, contributing to a net income of $150 million. However, these results fell short of Wall Street estimates, leading to a 12.4% drop in its shares after-hours. Despite the strong performance in crypto trading, overall revenue declined 3.6% compared to expectations. Robinhood's assets under custody rose dramatically by 76% year-on-year to $152.2 billion, bolstered by escalating crypto valuations, particularly the increase in total crypto assets. Despite the share price plunge, Robinhood's CFO expressed satisfaction with the company's performance over the past year, noting that the last three quarters were the highest in its history. The firm continues to expand its crypto offerings, having initially launched its cryptocurrency unit in 2018 and adding new tokens over the years. The acquisition of a new firm to service institutional investors, subject to regulatory approval, is also underway and expected to finalize in early 2025.

Source 🔗