Bloomberg News reports that Robinhood Market Inc.’s trading revenue dropped in the 4th quarter and gave a narrow miss to the expectations of Wall Street. This marks a decline in second-conservative quarter-over-quarter amidst the frenzy given rise to by the meme coin at the beginning of last year.
The revenue from crypto was recorded as $48 million, an average of a 6% drop from what it was in the earlier quarter, thereby missing the average estimate of $55 million as given by the analysts and as Bloomberg surveyed the same. Despite the same, it escalated 304% from a year ago. Robinhood shares dropped 12% in post-market trading once the company released revenue reports, which was short of what Wall Street had predicted.
Crypto offerings occupy center stage in the strategy adopted by Robinhood. Besides, the company’s policy of zero commission transactions has allowed new users to enlist their names. This strategy made it one of the major competitors of the bigger players on a crypto exchange like Coinbase Global Inc.
Last year during the second quarter, Robinhood brought in $233 million in revenue from crypto trading, as the retail investors were seen plowing into Bitcoin, the digital asset. In the third quarter, revenue from crypto was found to be made up of 40% of Dogecoin trading, which dropped to $51 million.
Robinhood plans to add more digital coins on its platform and has kept up with the same by engaging with regulators. However, executives have shown no commitment to adding Shiba Inu to its platform.
Robinhood was seen launching its initial version of Crypto Wallets stated that it is planning to launch a full-fledged wallet in the first quarter. It also aims at targeting and offering a crypto platform to clients globally in the current year.
