Massive Growth in Crypto Trading Boosts Robinhood’s Bottom Line
Robinhood Markets reported a 700% increase in cryptocurrency trading revenue in Q4 2024, propelling the company to its highest-ever quarterly profit amid a resurgence in digital asset markets.
- Crypto revenue: $358 million (up from $45 million YoY)
- Total transaction-based revenue: $672 million (up 200%)
- Total Q4 revenue: $1.01 billion (up 115% YoY)
- Net income: $916 million (up more than 10x YoY)
The surge was fueled by a broader crypto market recovery, with Bitcoin (BTC) more than doubling in 2024, surpassing $100,000 in December, and Ethereum (ETH) gaining 71.5% for the year.
Record Trading Volume Reflects Crypto Comeback
Investor interest soared, driving Robinhood’s:
- Crypto trading volume: $71 billion (+400% YoY)
- Assets under custody (AUC): $193 billion (+88% YoY)
- Net deposits: $16 billion for the quarter
- Gold subscribers: 2.6 million (+86% YoY)
Robinhood’s stock price reflected this momentum, jumping 4.8% to $55.91 at market close and another 17% to $65.45 in after-hours trading.
Expanding Global Crypto Presence
Robinhood is deepening its crypto offerings:
- Acquisition of Bitstamp: A $200 million deal to expand internationally.
- Ethereum staking launch: Rolled out in the EU last quarter.
- New token listings: Seven additional cryptocurrencies listed in the U.S., with more expected this year.
CEO Vladimir Tenev highlighted tokenization as a key growth area, positioning Robinhood at the intersection of DeFi and traditional finance. Tenev expressed excitement about plans to tokenize equities, private investments, and more, tapping into a sector that grew 52% last year and could reach $50 billion in 2025.
Looking Ahead: Global Expansion and New Products
Robinhood is pushing beyond crypto, focusing on:
- International growth: Launching in Asia-Pacific (APAC) in 2025, with Singapore as its hub.
Product expansion: Growing options and futures trading for active traders.
