As a researcher with a background in financial markets and experience following the crypto space, I’m impressed by Robinhood’s (HOOD) first-quarter results, particularly the significant surge in notional crypto trading volume and revenue. The 232% increase in crypto-related revenue to $126 million was a major contributor to the overall transaction-based revenue growth of 59% year-over-year to $329 million.


In the first quarter of this year, Robinhood’s crypto trading volume reached an impressive $36 billion – marking a significant surge of 224% compared to the same period last year.

The surge in crypto-revenue, amounting to $126 million, represented a significant jump of 232%, which was a major contributor to the overall increase of 59% in transaction-based revenue for the first quarter, reaching $329 million.

As of March 31, Robinhood held approximately $26.2 billion worth of cryptocurrencies belonging to its users – marking a significant increase of 78% compared to the end of 2023.

It’s not unexpected that larger transaction revenues from crypto trading are being reported, as Coinbase (COIN), a publicly traded crypto company, similarly announced impressive first quarter earnings attributed to favorable market conditions for cryptocurrencies.

Robinhood surpassed expectations in its first-quarter financial report, recording revenue of $618 million instead of the predicted $552.7 million by analysts. Similarly, the company’s earnings per share amounted to $0.18, which was higher than the anticipated $0.06 by analysts.

As an analyst, I’ve observed a noteworthy discrepancy in the after-hours market performance of Robinhood (HOOD) and Coinbase (COIN) shares on Wednesday. Robinhood experienced a substantial rise of approximately 7%, while Coinbase saw a minimal decrease. So far this year, HOOD has demonstrated impressive growth with a gain of roughly 40%, contrasting COIN’s more modest increase of 22%.

Last week, the company revealed that it had received a Wells Notice from the U.S. Securities and Exchange Commission regarding its cryptocurrency division.

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2024-05-08 23:45