Robinhood’s 30% Crypto Income Plunge: Vlad Tenev Trying To Diversify, Needs Platform ‘Much less Reliant’ On Transaction Volumes – Grayscale Bitcoin Mini Belief (BTC) Frequent items of fractional undivided useful curiosity (ARCA:BTC)

Robinhood Markets Inc. HOOD reported a marked decline in its cryptocurrency income within the first quarter as compressed costs hampered buying and selling exercise.

What occurred: The commission-free buying and selling platform launched its quarterly financials after Wednesday’s market shut and disclosed a cryptocurrency notional buying and selling quantity of $252 million, up 100% year-over-year however down 30% from the earlier file quarter.

The cryptocurrency income was over 43% of Robinhood’s whole transaction-based income for the quarter.

The agency additionally revealed a cryptocurrency notional buying and selling of $46 billion, up 28% from the identical quarter final yr however down 35% from the fourth quarter of 2024.

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The corporate’s cryptocurrency arm, Robinhood Crypto, permits customers to commerce in standard cash comparable to Bitcoin BTC/USD, Ethereum ETH/USD, Dogecoin DOGE/USDand others.

Why It Issues: The autumn in quantity and income adopted a marked contraction within the cryptocurrency market within the first quarter, with whole capitalization falling by greater than 18%. Notably, Bitcoin and Ethereum plunged 11.82% and 45.41%, respectively, in the course of the interval.

In the course of the earnings name, Robinhood CEO Vlad Tenev stated it was regular for buying and selling volumes to fluctuate, however he was happy that the corporate’s market share was intact.

Tenev additionally talked about diversifying the enterprise away from cryptocurrency. “We’re diversifying the enterprise exterior of the crypto enterprise, which can make us much less reliant on crypto transaction volumes,” the CEO stated.

Value Motion: Shares of Robinhood rose 1.45% in after-hours buying and selling after closing 0.53% decrease at $49.11 throughout Wednesday’s buying and selling session, in response to information from Benzinga Professional. Yr-to-date, the inventory has gained 31.80%.

The inventory exhibited a really excessive momentum rating as of this writing. Benzinga Edge Inventory Rankings may also help you see how different crypto-focused firms stack up on this metric.