Robinhood crypto revenue In Q2 increased by 161% to $81M, resulting in a 40% increase in total revenue to $682M.
The growth of options and crypto trading primarily drove this growth. Robinhood Markets, Inc. reported a significant increase in its second-quarter earnings, with cryptocurrency transaction revenues increasing by 161% to $81 million. In the same quarter, the transaction revenues generated from equities have doubled.
Robinhood crypto revenue experienced 161% increase in Q2
Robinhood, a commission-free brokerage firm, has disclosed that its revenue from crypto transactions nearly tripled in the second quarter of 2024. The company reported a 161% increase in crypto transaction revenues, which amounted to $81 million during the same period as the previous year.
As a result, this figure is nearly double the transaction revenues from equities in the same quarter. The company’s total revenue increased by 40% to $682 million in the same quarter last year.
In the second quarter, Robinhood Crypto revenue generated $327 million from options trading, which continues to be its primary source of revenue. Additionally, digital assets’ “notional” trading volume increased by 137% year-over-year to $21.5 billion, a decrease from the $36 billion recorded in Q1 2024.
Growth as a Result of the Bitstamp Acquisition
In June, Robinhood, an American brokerage service, acquired Bitstamp, a global-scaled cryptocurrency exchange, to enter the cryptocurrency exchange market. Bitstamp maintains over 50 active licenses and registrations in various jurisdictions, including the United States, the United Kingdom, the European Union, and Asia.
In the immediate term, the impact of this acquisition on Robinhood’s financial performance remains uncertain.
The Robinhood Crypto revenue also reported that monthly active consumers increased to 11.8 million, a 9% increase from the previous year. There was a 652% increase in net income to $188 million, and earnings per share increased by 600% to $0.21.
User Metrics and Trading Volumes
The company’s transaction-based revenue increased by 69% to $327 million, primarily due to a 43% increase in options revenue and cryptocurrency revenue. Robinhood’s net interest income increased by 22% due to the rise in short-term interest rates and securities lending.
In the same vein, Robinhood Gold, a premium subscription service, experienced a 61% increase in subscribers, surpassing 2 million. The company’s net deposits reached a record high of $132 billion, with a yearly compounded growth rate of 41%.
Despite the remarkable growth figures, Robinhood’s shares (HOOD) were down by 0.52% in after-hours trading after the earnings announcement. The company’s stock was reported at $17.12 at the close of the market, indicating a minor decrease in after-hours trading.
