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Robinhood, the popular American financial services company, is finally out of the woods. In its report for the third quarter ending September 30, 2024, the company revealed its results Revenue increased by 165%The total net deposits since the beginning of the year to date increased to $34 million.
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It is a promising development for Robinhood Markets This quarter after facing a lot of challenges in the past. The company took a hit in early 2021 after it decided to restrict trading in GameStop and other meme stocks during the market frenzy. In a separate statement, Robinhood shared that it is nearing a settlement with investors and traders.
The third quarter record is the company’s second-best revenue
Despite its challenging backdrop and regulatory pressures from the Securities and Exchange Commission, Robinhood Markets found its rhythm for a strong third-quarter performance. The company explained that its net deposits grew to $34 billion, and revenues rose by 36% annually to $367 million, with Cryptocurrency unit Leading the boom.
Robinhood said in its filing that its cryptocurrency revenue increased to $61 million during the quarter, or 165%. Market observers expected this growth after the company completed its acquisition of Bitstamp, which increased its trading volume.
Robinhood surprises with impressive growth
Robinhood’s growth story has impressed many market watchers and analysts, given its recent experience with FTX, the “meme craze,” and run-ins with the Securities and Exchange Commission. Last year, the company bought back its shares from Alameda Research for $605 million.
At the time of the deal, many observers expected Robinhood to avoid investing in cryptocurrencies. However, the company surprised analysts by making cryptocurrencies a significant investment through its Robinhood Crypto unit. For its third-quarter filing, Robinhood’s assets under custody (AUC) rose 76% year over year to more than $152 billion.
The company stated that Collectibles It rose due to rising stocks, better cryptocurrency valuation, and sustainable deposits. The company has a heavy portfolio BitcoinThe recent surge in the top cryptocurrencies bodes well for the company, which will continue to generate profits as long as the trend remains bullish for BTC.
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Robinhood is finally moving forward after regulatory pressure
Robinhood Markets is finally moving away from the challenges and issues. As we previously reported, the company was embroiled in a trading scandal in early 2021 due to hype around GameStop stock and the meme. Last May, the Securities and Exchange Commission (SEC) issued a good notice to the company.
The agency argued that some of Robinhood’s cryptocurrency services violate securities laws. Interestingly, the SEC has not filed a lawsuit against the company.
In the meantime, Robinhood Markets is business as usual. Based on reports, Robinhood has listed several tokens and allowed transfers of assets such as SOL. However, access to the service is limited to EU customers.
Featured image by Omar Marques/SOPA Images/LightRocket via Getty Images, chart from TradingView