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Robinhood: RECORD profits, and thanks to crypto
By Davide Grammatica
The Robinhood crypto exchange recorded a sharp increase in revenues in Q4 2024, and now threatens to compete with the most important players in the sector
The rise of Robinhood
Robinhood has only recently bet heavily on cryptocurrencies, and the choice could not have a more evident impact on its balance sheets.
The latest surprised the whole community, revealing quarterly revenue of $358 million, higher than the previous all-time high. The record was set in 2021, when the post-pandemic environment and low interest rates created the conditions for peak trading volumes.
The data relating to cryptocurrencies is particularly impressive, a category that recorded a revenue increase of 733% compared to the same period last year.
Cryptocurrencies also accounted for 53.3% of transaction-based revenues, as well as one third of total platform revenues, surpassing stocks, options and other products combined.
Trading volumes have increased by 455% in one year, and Robinhood seems to want to relaunch by investing in tokenization and the new opportunities offered by RWAs.
The company also has plans for an expansion program based on the acquisition of Bitstamp, attracting a more institutional audience.
Robinhood’s $HOOD crypto trading volume in Q4 2024 was nearly as large as the combined volume in the first three quarters of the year. Can’t even imagine what Coinbase $COIN will print tomorrow. pic.twitter.com/zdOkhgNHAi
— Jevgenijs Kazanins (@jevgenijs) February 12, 2025
The challenge to the biggest CEXs
According to a Reuters report, Robinhood is now one of the main competitors of the largest crypto exchanges, starting with Coinbase.
The fact that Robinhood has had such a rise in revenue is likely a testament to the increasing adoption of the platform and the fact that the new generation of traders prefer its offering over that of its competitors.
As we have already seen, however, the whole sector is reaping the rewards of a rapidly growing world. Coinbase’s COIN stock is currently flying high on the stock market at +8% after a record quarter, with revenues up +130% in the best quarter since 2022.
