Prominent trading company Robinhood released its Q2 financial statement amid the current carnage, and cryptocurrency did not disappoint. The study states that the company’s revenue from crypto transactions climbed 161% yearly to $81 million, doubling its $40 million revenue from equity.
In its Q2 financial statement released on Aug. 7, the trading firm disclosed that the $21.5 billion in trading volume represented a 40% decrease from Q1 2024 but a 137% increase from Q2 2023.
According to Robinhood, this was caused by a decline in monthly active users in Q2 as cryptocurrency values dropped. Elaborating on the same, Vlad Tenev, the CEO of Robinhood, said:
“When the crypto markets are hot there’s a huge immediate spike in monthly active user engagement metrics but then when crypto cools down that tends to drop more.”
With $20.6 billion in cryptocurrency assets under custody, Robinhood has increased its holdings by 57% in just a year. More net deposits and rising cryptocurrency values are the main drivers of this process.
Also Read: Robinhood Considers Listing Crypto Futures in US & Europe
Here’s What Got Robinhood: The Big Bucks
Interest income is now Robinhood’s most oversized revenue item, with net interest revenues up 22% yearly to $285 million. This rise is mostly attributable to the higher short-term interest rates.
However, it is essential to note that it is also driven by increased interest-earning assets and increased securities lending activity. As a result, for the time being, interest income accounts for 42% of Robinhood’s top-line revenues. With $327 million in revenue, options constituted the most significant source of revenue.
Also Read: How to Buy Crypto with Robinhood?
Overall, Robinhood’s record revenue of $682 million exceeded forecasts of $643.34 million. On the other hand, profits per share of 21c exceeded projections of 15c, showcasing their impressive financial performance.