Fun

Robinhood Q1 crypto trading surges 224% — SEC action ‘disappointing’

News Feed - 2024-05-09 09:05:41

Brayden Lindrea8 hours agoRobinhood Q1 crypto trading surges 224% — SEC action ‘disappointing’Robinhood’s crypto services contributed to nearly 40% of the firm’s transaction-based revenue and helped the firm produce a net profit for the second straight quarter.1240 Total views16 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksRobinhood CEO Vladimir Tenev described the recent Securities and Exchange Commission Wells notice as a “disappointing development” during a Q1 earnings call, as the firm posted a 224% increase in crypto trading volumes in the quarter to $36 billion.


Robinhood’s crypto-related services contributed to nearly 40% of its transaction-based revenue of $329 million, helping the firm record its second straight profitable quarter with a net income of $157 million.


But the strong quarter earnings results come in light of a Wells notice handed to the firm by the United States securities regulator last week, which targets Robinhood’s crypto listings and custodian operations.


Tenev said the news was a “disappointing development.”


Its chief financial officer, Jason Warnick, stressed the firm has adopted a conservative approach toward its coin listings and services and holds its crypto business to the same legal and compliance standards as its brokerage business.“So it’s disappointing to see more regulation by enforcement here.”


The Robinhood executives however stressed that customer accounts aren"t impacted by the development.


"We"re going to defend the firm and continue to advocate for our customers," Tenev added.


Aside from the dilemma, Robinhood’s first quarter performance surpassed industry expectations, with its reported revenue of $618 million beating a $534.5 million estimate by investment research firm Zacks by 15.6%.


Robinhood shares rallied as high as 7.3% to $19.15 in after-hours trading but has since cooled off to $18.55, according to Google Finance.HOOD’s change in share price on May 8. Source: Google Finance


Robinhood’s share price is now up 44.3% year-to-date.


Related:NYSE gauges interest in 24/7 stock trading like crypto: Report


Robinhood reported custodying $26.2 billion worth of crypto for users, marking a 78% rise from last quarter.


The substantial increase could be partially attributed to a rise in market prices, with Bitcoin (BTC) rallying 65.1% to $69,700 over the quarter.


Robinhood launched its cryptocurrency unit in February, 2018, offering Bitcoin and Ethereum (ETH) trading in several states. It has since expanded its offering for Litecoin (LTC), Uniswap (UNI), Avalanche (AVAX), Chainlink (LINK) and several other tokens.


Magazine:What do crypto market makers actually do? Liquidity, or manipulation# Business# SEC# Adoption# Financial Services# RobinhoodAdd reaction

News Feed

Bank Frick Expands Range of Crypto Assets to Offer Trading and Custodian Services for Bitcoin Cash
Bank Frick Expands Range of Crypto Assets to Offer Trading and Custodian Services for Bitcoin Cash Bank Frick, a leading European blockchain bank, has expanded its range of crypt
David Attlee1 hour agoMarathon’s Bitcoin mining rate fell 9% in AugustThe company still mined five times more Bitcoin than in August 2022, producing 1,072 last month, and said unfavorable weather conditions caused the
Bitcoin trader eyes $60K next as bears force fresh BTC price rejection
William Suberg2 hours agoBitcoin trader eyes $60K next as bears force fresh BTC price rejectionBitcoin sees familiar BTC price behavior as bulls’ latest push to $70,000 lasts a matter of minutes.1178 Total views1 Total
White House Releases ‘First-Ever’ Framework for Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear
White House Releases "First-Ever" Framework for Digital Asset Development — Crypto Industry Leader Says Recommendations Are Unclear The White House has now released what it calle
Bitcoin Mining Industry Reveals Mergers, Hashrate Increases, and New Facilities Amid Market Downturn
Bitcoin Mining Industry Reveals Mergers, Hashrate Increases, and New Facilities Amid Market Downturn While bitcoin is down more than 72% from the crypto asset’s all-time hig
Bitcoin ‘dumb money sells’ as whales, sharks add 328K BTC in a month
William Suberg7 hours agoBitcoin ‘dumb money sells’ as whales, sharks add 328K BTC in a monthBitcoin big players seem ready to buy BTC at any price, while smaller market participants decrease exposure.4108 Total view
Korean university launches metaverse with private student access
Tristan Greene6 hours agoKorean university launches metaverse with private student accessThe school’s metaverse was built by LG Uplus to cater to tech-savvy college students.1999 Total views7 Total sharesListen to arti
ZK systems will have their ChatGPT moment: Telos Foundation
Ezra Reguerra7 minutes agoZK systems will have their ChatGPT moment: Telos FoundationCointelegraph asked professionals working with zero-knowledge technology to get their insights on the current state of ZK.23 Total view
Bitcoin Miner Argo Blockchain Sells Helios Facility to Galaxy Digital for $65 Million, Galaxy to Host Argo’s ASIC Fleet in Texas
Bitcoin Miner Argo Blockchain Sells Helios Facility to Galaxy Digital for $65 Million, Galaxy to Host Argo"s ASIC Fleet in Texas After the publicly-listed bitcoin mining firm Argo
Grayscale Considering 25 More Crypto Assets for Investment Products
Grayscale Considering 25 More Crypto Assets for Investment Products Grayscale, the world’s largest crypto asset manager, is considering 25 more crypto assets for investment
Five Reasons Why Koinly Is the Best Crypto Tax Software
Five Reasons Why Koinly Is the Best Crypto Tax Software sponsored Koinly is a leading a cryptocurrency tax calculator and portfolio tracker for traders, investors and accountants. T
Bitcoin Derivatives See Record Highs, Year-End BTC Options Show 29% Chance Price Crosses $20K
Bitcoin Derivatives See Record Highs, Year-End BTC Options Show 29% Chance Price Crosses $20K As the crypto economy sets its sights on half of a trillion in USD