Robinhood cryptocurrency trading in November grew by 75%, annual revenue may reach a figure of nine digits.

Robinhood Reports 75% Increase in Cryptocurrency Trading for November, Anticipates Nine-Digit Annual Revenue

Author: Martin Young, Cointelegraph; Translation: Song Xue, LianGuai

The crypto-friendly trading platform Robinhood reports a 75% month-on-month increase in digital asset trading volume in November.

Robinhood stated in an 8-K filing submitted to the US Securities and Exchange Commission on December 4th, “The nominal volume of cryptocurrency trades in November was about 75% higher than in October 2023.”

However, compared to October, the trading volume for stocks and options contracts in the same month remained roughly the same.

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This bountiful month marks a turnaround for Robinhood, as the company revealed in its third-quarter earnings report a 55% year-on-year decline in nominal cryptocurrency trading volume.

As a result, its third-quarter revenue was $467 million, below analysts’ expectations. Trading-based revenue declined 11% year-on-year to $185 million, primarily due to the decrease in cryptocurrency trading volume in 2022.

Robinhood’s 8-K filing shows preliminary operating data for November 2023. Source: SEC

Given the recent rebound in the cryptocurrency market, Robinhood may focus on profitability in the fourth quarter, as the total market value has surged 40% to $1.6 trillion in the past two months.

Vlad Tenev, co-founder and CEO of Robinhood, told investors during the November earnings conference call that the platform may eventually achieve “nine-figure” annual revenue.

On December 4th, Tenev said in an interview with Yahoo Finance that retail investors are once again showing interest in cryptocurrencies.

“You start to see some parts of the retail investor base wake up to the rebound, and in cryptocurrency activity, you see the surge in popularity.”

“As we’ve seen in the past, as the price of Bitcoin approaches its all-time high, media coverage and intensity increase,” he added. “I think that plays a role as well.”

HOOD’s price has risen this year, up only 18% since the beginning of 2023. However, the company’s stock price has been declining since reaching a peak slightly above $13 in 2023, falling since mid-July. HOOD is trading at $9.95 in after-hours trading, up 2.5% for the day.

In addition to launching stocks in the UK market, Robinhood plans to launch futures trading in 2024, awaiting regulatory approval.

In August, Cointelegraph reported that Robinhood had accumulated 118,000 BTC, worth about $3 billion at the time.

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