Robinhood’s (HOOD) Crypto Book: Reports Record-Breaking Quarter

TLDR

• Robinhood’s crypto revenue increased by 700% to $358 million in Q4 2024, driven by Bitcoin surpassing $100,000
• Total transaction revenue doubled to $672 million, with crypto trading volume reaching $70 billion
• Company acquired Bitstamp for $200 million and plans expansion into Asia-Pacific
• Added seven new cryptocurrencies and introduced Ethereum staking in Europe
• Stock price rose 365% over the past year, with shares reaching $65.45 in after-hours trading

Robinhood Markets achieved unprecedented growth in the fourth quarter of 2024, with crypto trading leading the charge in a remarkable financial performance. The company reported that its cryptocurrency revenue increased by 700% to reach $358 million, compared to $45 million in the same period last year.

The surge in crypto activity helped push Robinhood’s total transaction-based revenue to $672 million, representing a 200% increase from the previous year. This growth contributed to the company’s overall quarterly revenue of $1.01 billion, marking a 115% year-over-year increase.

The company’s crypto trading volume experienced a dramatic turnaround in the fourth quarter. After declining through most of 2024, with volume dropping from $36 billion in the first quarter to $14.4 billion in the third, crypto trading rebounded to reach $70 billion in the fourth quarter.

Robinhood Markets, Inc. (HOOD)

This resurgence coincided with Bitcoin’s price exceeding $100,000 in late December 2024. The broader crypto market showed renewed strength, with Ethereum gaining 71.5% over the year. The market recovery attracted both retail and institutional investors back to digital assets.

Robinhood’s net income reflected this positive trend, increasing more than tenfold to $916 million. The company reported diluted earnings of $1.01 per share in the fourth quarter, a substantial improvement from $0.03 per share a year earlier.

The company’s expansion in the crypto sector included several key developments. Robinhood acquired Bitstamp, one of the world’s oldest crypto exchanges, for $200 million in June. This acquisition aims to strengthen the company’s international presence.

Product Innovation

Product innovation played a crucial role in the quarter’s success. Robinhood introduced Ethereum staking for European users and added seven new cryptocurrencies to its U.S. platform. CEO Vladimir Tenev indicated that the pace of new token listings is expected to increase in the coming year.

The company has shown particular interest in tokenization, a sector that grew 52% last year to $12 billion, excluding stablecoins. Tenev expressed enthusiasm about Robinhood’s position at the intersection of traditional finance and decentralized finance (DeFi), with plans to tokenize various assets including equities and private investments.

Beyond cryptocurrency services, Robinhood continued to expand its traditional financial offerings. The company launched a new platform for active traders and introduced the Robinhood Gold Card. Their international expansion efforts included growth in both the UK and EU markets.

Looking ahead, Robinhood plans to establish a presence in the Asia-Pacific region, with Singapore serving as its regional hub for 2025. The company is also developing its options and futures trading products to attract more active traders.

The company’s assets under custody (AUC) increased by 88% to $193 billion, boosted by $16 billion in net deposits during the quarter. Robinhood’s Gold subscription service grew to 2.6 million subscribers, representing an 86% increase from the previous year.

CEO Tenev has been actively involved in regulatory discussions, advocating for clearer guidelines in the U.S. crypto market. In a recent Washington Post op-ed, he called for the Securities and Exchange Commission (SEC) to establish rules that would allow early-stage companies to tokenize equity.

Robinhood’s equity trading revenue also showed strong performance, rising 144% to $61 million. This growth complemented the company’s crypto success and contributed to its overall financial results.

The market has responded positively to Robinhood’s performance. The company’s stock price has increased by 365% over the past year. Shares closed at $55.91 and continued to rise in after-hours trading, reaching $65.45.

The fourth quarter results mark a turning point from the company’s earlier performance in 2024, when crypto trading volume had been declining. The latest figures show how quickly market conditions can change in the digital asset space.

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