Robinhood, a popular commission-free brokerage firm, unveiled its Q4 results on Wednesday afternoon. The figures revealed a sustained interest in cryptocurrency trading among retail investors, despite the political climate around the November elections and Bitcoin’s surge towards $100,000.
The firm’s crypto trading volume experienced a colossal 400% year-on-year growth, reaching a staggering $70 billion. This is in contrast to the year’s earlier quarters where trading volumes had dipped to $36 billion in Q1, $21.5 billion in Q2, and $14.4 billion in Q3. Equity trading volume also saw a significant increase, with a 154% rise to $423 billion.
Robinhood’s revenue from transactions skyrocketed by 200% from the previous year to $672 million. This was majorly driven by crypto trading, which contributed $358 million (a 700% increase) and equities which added $61 million (a 144% increase). The company also expanded its crypto asset offerings in the U.S. by seven and introduced Ethereum staking in the EU during Q4.
In a statement in December, Robinhood CEO Vlad Tenev disclosed that although the firm had considered holding Bitcoin, there were no immediate plans to maintain a BTC reserve. However, the company hinted at introducing futures trading for Bitcoin, oil, and gold in the upcoming month.
Assets under the company’s management (AUM) surged 88% year-on-year to $193 billion, driven by continuous net deposits and heightened valuations of stocks and cryptocurrencies. The AUM represents the total value of all equities, options, cryptocurrencies, and cash in user accounts, minus any dues from users.
Robinhood reported Q4 diluted earnings of $1.01 per share, a significant jump from last year’s $0.03 per share. The company’s quarterly revenue came in at $1.01 billion, slightly above the anticipated $944 million.
CEO Vlad Tenev reflected on the company’s achievements and plans in a press release, stating, “In 2024, we accelerated product development with a new platform for active traders, the launch of Gold Card, an extended UK and EU product suite, and much more. We envisage a massive opportunity ahead as we strive to empower anyone, anywhere, to buy, sell, or hold any financial asset and perform any financial transaction through Robinhood.”
In an op-ed for the Washington Post in January, Tenev urged the SEC to establish clear rules for tokenizing equity in early-stage startups. “The U.S. is finally taking crypto seriously,” he stated. “It’s time to further expand our understanding of what’s possible.”
