Cryptocurrency-friendly trading platform Robinhood reported a 75% month-on-month increase in digital asset trading volume in November.
In 8-K shape presentation At the U.S. Securities and Exchange Commission (SEC) on December 4, Robinhood noted that “Notional cryptocurrency trading volumes for November were approximately 75% above October 2023 levels.”
However, the activity did not translate into trading volumes for stock and options contracts, which were mostly stable compared to October.
The bumper month marks a turnaround for Robinhood, which revealed a 55% decline in notional cryptocurrency volumes over the year in its third-quarter earnings presentation.
As a result, its third-quarter revenue fell short of analyst estimates for the quarter by $467 million. Transaction-based revenue decreased 11% year-over-year to $185 million, primarily due to declining cryptocurrency volumes during 2022.
Robinhood could be eyeing a more profitable fourth quarter in light of the cryptocurrency market's recent rally, which has seen total capitalization rise 40% to $1.6 trillion in the past two months.
Robinhood co-founder and CEO Vlad Tenev told investors on an earnings conference call in November that the platform could eventually generate “nine figures” in annual revenue.
Speaking to Yahoo Finance on December 4, Tenev bitcoin-surge-24-hour-trading-and-a-potential-9-figure-business-214812276.html” target=”_blank” rel=”noopener nofollow”>saying that retail investors were starting to show interest in cryptocurrencies again.
“You're starting to see retail investors take notice of certain segments of the rally, and in crypto activity, you're seeing a surge.”
“What tends to happen is, as we've seen in the past, that as the price of bitcoin approaches all-time highs, the media coverage and intensity increases,” he said before adding: “I think that too influences”.
Related: Robinhood to implement US stock trading in the UK market
Robinhood stock prices are up 18% since the beginning of 2023. However, the company's shares have been trending lower since mid-July after reaching a 2023 high of just over $13. Robinhood shares were priced at $9.95 in after-hours trading after gaining 2.5% daily at the time of writing.
In addition to launching shares on UK markets, Robinhood plans to launch futures trading in 2024, pending regulatory approval.
In August, Cointelegraph reported that Robinhood had accumulated 118,000 btc worth around $3 billion at the time.
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