IMPORTANT POINTS:
- Robinhood Reports Crypto Trading Revenue Drop: Online trading platform Robinhood saw an 18% decline in Q2 revenue.
- Holds Crypto Assets in Custody: Robinhood held 11.5 million in crypto assets in custody during the second quarter.
- Robinhood shares suffer drop: Despite reporting total revenue of $486 million in the second quarter, beating analyst estimates.
Renowned online exchange, Robinhood (HOOD), revealed in its latest earnings report that it saw $31 million in cryptocurrency trading revenue in the second quarter, down 18% compared to 38 million of the first trimester.
These 31 million in revenue generated by cryptocurrency trading during the second quarter is equivalent to 16% of the total income from trading operations, which amounted to 193 million, experiencing a 7% drop compared to the previous quarter.
Likewise, Robinhood reported that it had 11.5 million in crypto assets in custody, the same figure that was reported at the end of the first quarter.
In June, the Robinhood platform stopped supporting all tokens that were listed as securities in the lawsuits filed by the SEC against cryptocurrency exchanges Binance and Coinbase.
Among these tokens are Cardano (ADA), Polygon (MATIC) and Solana (SOL). However, currently, the platform offers trading for 15 different cryptocurrencies, including bitcoin (BTC), ether (ETH), dogecoin (DOGE), and avalanche (AVAX).
Overall, during the second quarter, Robinhood reported total revenue of $486 million, beating analyst estimates of $473 million in revenue.
Robinhood’s shares, which have risen 54% so far this year, fell 7.5% to 11.50 in after-close trading on Wednesday.
