The company’s financial report states that revenue from cryptocurrency transactions reached $81 million, a 161% increase from the previous year. This remarkable rise far outpaced the $40 million realized from stocks in the same time frame.
The cryptocurrency revenue increased in spite of a difficult trading environment. At $21.5 billion, Robinhood’s overall trading volume increased by 137% over the prior year. However, compared to the first quarter of 2024, this number was 40% lower, which the business explains to a decline in active users brought on by declining cryptocurrency prices. In addition, the average trading volume per user decreased by 18%, and the overall number of client trades decreased by 27%.
A 57% rise in crypto assets under management year over year to $20.6 billion supports the company’s notable growth in crypto revenue. This acquisition fits perfectly with Robinhood’s plan to expand its market reach and strengthen its cryptocurrency offerings.
Even with the robust revenue growth, on August 7, Robinhood’s shares saw a minor decrease of 0.52% to $17.12. But it recovered with a 2.86% gain in after-hours trade. Vlad Tenev, the CEO, gave a bullish assessment of the company’s prospects, emphasizing its continued dedication to providing value to customers and its aptitude for handling regulatory obstacles.
