Robinhood CEO Tenev hints at holding Bitcoin on the balance sheet but warns of complexities for public investors.
Robinhood’s crypto revenue surged 165% in 2024, driven by a twofold increase in cryptocurrency trading volumes.
Robinhood currently holds $19.45B in user cryptocurrencies, reflecting strong growth in its crypto trading segment.
Robinhood CEO Vladimir Tenev has hinted at the possibility of holding Bitcoin on the company’s balance sheet for investment purposes. Speaking with cryptocurrency supporter Anthony Pompliano, Tenev admitted that the company had not embarked on such an approach. However, the thought was still on the table.
Robinhood Explores Bitcoin as an Investment Asset
Tenev noted that Robinhood already holds cryptocurrencies as part of its core trading operations. The company purchases digital assets for its trading services. This move made them part of the balance sheet under safeguarding obligations.
However, Tenev highlighted potential complexities in holding Bitcoin solely for investment purposes. He explained that such a move could confuse public market investors. This would position Robinhood as both a trading platform and a Bitcoin investment entity. Despite this, he acknowledged that Robinhood stock already shows strong correlation with Bitcoin’s performance. Tenev said they will not rule it out, signaling openness to future developments.
Crypto Growth Drives Robinhood’s Revenue Surge
Robinhood’s interest in Bitcoin investments comes as its cryptocurrency segment experiences significant growth. The company reported a twofold increase in crypto trading volumes during Q3 2024. This surge resulted in a 165% year-over-year rise in cryptocurrency-related revenue. This underlines the growing importance of digital assets in Robinhood’s business model. Additionally, Robinhood currently holds $19.45 billion in user cryptocurrencies as part of its safeguarding requirements.
According to Tenev, Robinhood will continue to serve the interest of its shareholders and seeks to identify strategic prospects in digital assets. Currently, Bitcoin is priced at $93,243.34, which is 0.09% down in the past 24 hours. As for Robinhood, the stock price declined by 2.17% on Monday closing at $37.50. Analysts currently have a consensus price target of $38.19, with predictions ranging between $11 and $55.
Future of Bitcoin in Robinhood’s Strategy
Robinhood’s evolving relationship with Bitcoin reflects its commitment to the growing digital asset market. The company remains focused on balancing investor clarity with strategic opportunities in cryptocurrency adoption. Additionally, Tenev’s comment means that while Robinhood has not yet put Bitcoin on its books as an investment asset it is certainly on the agenda.
The shares of digital assets and the interest of institutional investors are increasing, which also strengthens Robinhood’s stance in the crypto market. Future actions the company will take regarding Bitcoin will remain a subject of interest for most investors and specialists.
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