Robinhood’s Crypto Trading Volume Surges to Over $14B in Q3 2024

Robinhood’s Q3 2024 earnings report, released on October 30, shows a notable uptick in crypto trading activity, with volumes reaching $14.4 billion—a 114% increase from Q3 2023. 

According to the report, the surge in Robinhood’s crypto trading volumes fueled a 165% year-over-year increase in crypto revenue, reaching $61 million. However, the firm’s overall Q3 performance fell short, with a reported net income of $150 million and revenue of $637 million, both missing analysts’ forecasts.

Earnings per share were reported at $0.17, just below the $0.18 estimate from Zacks Research, while revenue fell 3.6% short of Zacks’ projection of $661.2 million. As a result, Robinhood’s stock (HOOD) fell 12.4% in after-hours trading, according to Google Finance. Despite this decline, HOOD is still up 128% for the year, trading at $28.21.

Robinhood’s Diversification

During Q3, Robinhood explored several new areas within Web3. In September, it ventured into the European stablecoin market and expanded crypto transfer services across the EU. The company also entered the political prediction market in late October, signaling a diversified strategy in light of regulatory scrutiny.

Additionally, Robinhood agreed in June to acquire Bitstamp in a $200 million deal aimed at strengthening its institutional investor services in the US. The acquisition is expected to conclude in the first half of 2025.

Since launching its cryptocurrency unit in February 2018 with support for Bitcoin (BTC) and Ether (ETH), Robinhood has gradually added other assets like Litecoin (LTC), Uniswap (UNI) Avalanche (AVAX), and Chainlink (LINK) to its platform.

‘Just Getting Started’

The company’s executives highlighted milestones achieved over the last year and shared an optimistic outlook on product development. CEO Vlad Tenev praised the company’s Q3 results, pointing to recent launches like Robinhood Legend, a desktop trading platform, and upcoming tools, including index options, futures, and a realized profit and loss feature. 

“We have a ton of momentum, and we’re just getting started,” Tenev remarked.

CFO Jason Warnick shared similar confidence, noting that the last three quarters were the highest in company history, contributing to Robinhood’s growth trajectory.