Robinhood Crypto Transaction Revenue Dropped Almost 80% in Q3
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Answer Robinhood Crypto Transaction Revenue Dropped Almost 80% in Q3
Published by Robinhood, a trading company focused on Millennials Its third-quarter revenue report is on October 26, and things aren’t looking very good on the cryptocurrency front.
The company stated that digital asset activity has fallen from record levels in the previous quarter, resulting in significantly fewer new accounts.
This resulted in lower revenue in the third quarter of 2021 compared to the second quarter.
informed Robinhood reported a $51 million drop in revenue based on cryptocurrency transactions for the quarter.
In comparison, a massive 860% increase was recorded in the first quarter of this year compared to the $5 million recorded in the third quarter of 2020.
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Cryptocurrency transaction revenue is 78.1% lower than it was in the second quarter of 2021.
Interestingly, the company has already forecast a decline in trading activity for the third quarter.
It is likely to see a slight increase in crypto revenue for the fourth quarter as the crypto market has recovered for the time being.
Cryptocurrency revenue drops on Robinhood:
The company’s total net revenue for the period was $365 million, with 14% coming from cryptocurrency transactions.
This is down 35% from the $565 million reported in the second quarter, when cryptocurrency transactions made up 41% of the company’s total net revenue.
Wall Street analysts expected Robinhood’s shares to fall, but the decline was much larger than the actual estimated figure.
In fact, the company lost nearly $2 per share on disappointing results and posted a net loss of $1.32 billion.
Vlad Tenev, CEO and co-founder of Robinhood, said:
This quarter was about developing more products and services for our customers, including cryptocurrency wallets.
More than a million people have joined the waiting list for cryptocurrency wallets so far.
Read:China accounts for 66 percent of bitcoin mining
He added:
Looking to the future, the company is committed to offering tax-advantaged retirement accounts to help everyone invest in the long-term.
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