May 8, 2024 11:40pm | 1 minute read |
trading platform Robinhood Markets Co., Ltd. (NASDAQ:HOOD) revealed that notional crypto trading volume in the first quarter was $36 billion, more than triple the year-over-year period.
what happened: Due to a surge in trading volumes, cryptocurrency-related revenue rose 232% year over year to $126 million. The company said its crypto division played a key role in driving total transaction-based revenue to $329 million, up 59% year over year.
The company reported that it had $26 billion worth of cryptocurrencies under custody as of March 31, marking a 78% increase from the previous quarter.
Robinhood Crypto, the company's cryptocurrency division, allows users to use Bitcoin (Cryptocurrency: BTC), Ethereum (Cryptocurrency: ETH), Dogecoin (Code: Doge), others.
Why it's important: Robinhood's impressive numbers from the crypto industry come despite growing regulatory hostility in the U.S., where the company was filed with the SEC in February over its crypto listings, platform operations and security. received a subpoena.
Most recently, the company revealed that it had been hit with a Wells Notice from regulators, likely a prelude to enforcement action.
CEO answering questions about Well Notice during financial results conference Vlad Tenev called this an unfortunate development, saying, “We strongly believe that U.S. consumers should have access to this asset class. They should be on equal footing with people around the world.”
The CEO said the company will defend itself against any legal action.
CFO Jason Wernick It is “business as usual” for Robinhood Crypto, and customers are reassured that their accounts will not be affected by the Wells notice.
Price action: Robinhood stock rose 4.20% to $18.60 in after-hours trading as of 7:59 p.m. ET.
Read next: Bitcoin, Ethereum, Dogecoin continue to fall: Analyst says King Crypto Network’s fundamentals point to 300% upside and could top out between $250,000 and $275,000 ing
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