This article is also available in Spanish.
Robinhood, the famous American financial services company, is finally out of the woods. In its filing for the third quarter ending September 30, 2024, the company disclosed that revenue increased 165%, and year-to-date (YTD) revenue increased to $34 million.
Related Reading
It is a promising development for Robinhood Markets this quarter after facing many challenges in the past. The company took a hit in early 2021 after it decided to limit trading in GameStop and other meme stocks during market turmoil. In a separate statement, Robinhood shared that it is close to a settlement with investors and traders.
Filling Q3 is the Company’s Second Best Revenue
Despite its challenging backstory and SEC regulatory pressures, Robinhood Markets found its rhythm to post strong third-quarter performance. The company shared that its reserves grew to $34 billion, and revenue increased 36% year over year to $367 million, with its cryptocurrency unit leading the charge.
In its filing, Robinhood said cryptocurrency revenue rose to $61 million in the quarter or 165%. Market watchers expect this growth after the company completed the acquisition of Bitstamp, thereby driving its trading volume.
Robinhood Surprising With Amazing Growth
Robinhood’s growth story has impressed many market watchers and analysts, given its recent experience with FTX, the ‘meme frenzy,’ and run-ins with the SEC. Last year, the company bought its shares from Alameda Research for $605 million.
At the time of the transaction, many observers expected that Robinhood would avoid cryptocurrency investments. However, the company surprised analysts by making crypto a significant currency through its Robinhood Crypto unit. In its Q3 filing, Robinhood’s Asset Under Custody (AUC) increased 76% year-over-year to more than $152 billion.
The company reported that its holdings have increased due to higher equity, better crypto value, and steady deposits. The company has a heavy portfolio in Bitcoin, and the recent rise of the top crypto bodes well for the company, which will continue to lead as long as the trend remains cheap in BTC.
Related Reading
Robinhood Finally Moves Ahead After Regulatory Pressures
Robinhood Markets is finally moving away from challenges and problems. As already mentioned, the company went into a trading scandal at the beginning of 2021 due to the hype of GameStop and meme stocks. Last May, the Securities and Exchange Commission (SEC) issued a Wells Notice to the company.
The agency argued that some of Robinhood’s cryptocurrency services violated securities laws. Interestingly, the SEC did not file a lawsuit against the company.
For now, Robinhood Markets is business as usual. Based on reports, Robinhood has listed several tokens and allowed the transfer of assets such as SOL. However, access to the service is limited to EU customers.
Featured image from Omar Marques/SOPA Images/LightRocket via Getty Images, chart from TradingView