Robinhood’s stock tanks following a drop in crypto trading

HOOD, the stock of American financial services firm Robinhood, plunged by approximately 8% in after-hours trading on Tuesday after the trading platform’s revenue tanked due to light crypto trading. A report unveiled this news earlier today, citing the firm’s earnings call, which disclosed that its crypto trading revenue fell to $51 million in Q3 2021, a massive drop from Q2’s $233 million.

According to the report, the reduced crypto trading activity decreased the number of new, funded accounts, resulting in low revenue in the third quarter. As a result, Robinhood only managed to rake in $365 million in total revenue in the quarter, falling short of analyst estimates of $437.1 million. In comparison, Robinhood’s net revenue in Q2 was $565 million. 

Due to the poor performance, Robinhood reported an adjusted net loss of $2.06 per share, a wide margin compared to analyst expectations of a $0.67 loss per share.

Although crypto trading activity plunged significantly in Q3, Robinhood disclosed that over 1 million customers have signed up for the waitlist of its upcoming crypto wallet, which has been one of the most requested products on the platform. 

Improving the crypto experience for users

After digital assets helped push Robinhood’s net revenue soar in Q2, the company has been improving its platform to better accommodate crypto adopters. Apart from the planned crypto wallet integration, the company launched recurring crypto investments, allowing users to buy digital assets regularly at their own schedule without paying commissions.

During the company’s earnings call, CEO Vlad Tenev disclosed that Robinhood is awaiting regulatory clarity before adding more cryptocurrencies to its platform. The platform currently supports seven cryptocurrencies; Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC).

Tenev added that Robinhood feels good about the coins it is currently supporting, and the firm seeks to maintain this outlook. He further noted that the company would exercise a lot of caution when it comes to selecting new coins to list. 

While the company has not officially revealed the coins it is considering for listing, the firm conducted a survey, asking its users if they had invested in several cryptos over the past three months. The list comprised Cardano (ADA), Ripple (XRP), Dash (DASH), Shiba Inu (SHIB), Solana (SOL), and Tether (USDT).

Rumors of Robinhood potentially listing SHIB mount

This news comes after rumors of Robinhood planning to list SHIB continuing to push the meme coin to new heights. With a petition to get SHIB listed on Robinhood getting over 330,000 signatures, SHIB has been on a bull run that saw it rise from $0.000027 to set a new ATH above $0.000059 earlier today.

At the time of writing, SHIB is up 36.99% in 24 hours and 103.05% over the past seven days to change hands at $0.00005687. This bullish performance has seen SHIB become the 11th-largest crypto by capitalization, with a market cap of $22.7 billion. The coin’s daily trading volume has also surged 153% to hit $16.2 billion.


More to explore

Get on the VIP list!

Get company and PTPWallet updates and news sent straight to your inbox. No spam. Unsubscribe at any time. 

Get on the VIP list!

Get company and PTPWallet updates and news sent straight to your inbox. No spam. Unsubscribe at any time.