Robinhood, an American financial services company, announced that it had generated $48 million in cryptocurrency trading revenue during the fourth quarter 2021. This volume is compared to $51 million in Q3.
Quartal 4: Robinhood’s Crypto Revenue is Disappointing
Robinhood’s 2021 year was a very successful one. The company made significant financial profits throughout the pandemic. It began to slow down in digital asset trading revenue.
The recently released results show that crypto revenue was $48 Million in Q4, 2021. This is 6% less than the quarter before. Wall Street forecasts of $55 million were also not met by the company. Robinhood shares fell around 10% after the decline.
The company reminded that cryptocurrency trading revenue for Q4 2021 was 304% higher than in the fourth quarter of 2020 ($12million). Digital assets also accumulated profits totalling $419 million last year, compared to $27 million in 2020.
Robinhood’s cryptocurrency services have seen a huge increase in popularity since 2021. The platform currently allows users to purchase a variety of assets, including Bitcoin (BTC), Ethereum(ETH), Dogecoins (DOGE), and many others.
Vlad Tenev, the CEO of the company, revealed several months ago that his company was looking to offer clients more cryptocurrency options, including a digital wallet.
“We have been hard at work to give our customers the functionality they want. We understand that you want wallets.
Robinhood launched the product in January 2018. Aparna Chennapragada, the company’s CPO, stated that customers are excited about the new wallet since the waiting list reached two million.
The Quarters Before
Robinhood’s cryptocurrency revenue was strong in the second quarter 2021, when memecoins like Dogecoin exploded in popularity. The company reported that digital assets accounted for more than 50% of transaction-based profits in Q2. More than 60% of users traded crypto during this period.
Dogecoin, a meme-inspired token that was worth $62 million, accounted for 62% of the $233 Million revenue.
The Shiba-Inu-inspired digital currency, which Robinhood developed, lost some ground during Q3. As a result, Robinhood’s crypto revenue fell to $51million. Tenev chose not to dwell on the slump, as the company aimed at offering more services.
“This quarter was all about creating more products and services to our customers, including crypto wallets.”
Marla Brooks – Financial Analysis
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