Robinhood Records 700% Spike in Crypto Revenue

Robinhood (HOOD) has managed to surpass $1 billion in revenue within one quarter for the first time ever. 

During the fourth quarter, its revenue stood at $1.01 billion. The previous record was $682 million. 

Cryptocurrency-related revenue has surged a whopping 700% on the year-over-year basis to $358 million. This sum accounts for the lion’s share of the company’s transaction-based revenue. 

Notably, this is more than they earned from crypto trading in the five prior quarters

It also recorded options revenue of $222 million and equities revenue of $61 million. 

Robinhood’s net income has experienced a ten-fold increase, growing to a record-shattering $916 million.

Surging trading volumes

The company’s cryptocurrency trading volume was nearly as big as the combined trading volume in the three previous quarters. 

Related

Such massive activity should not come as a surprise given that the cryptocurrency market saw a massive rally in Q4, with Bitcoin surpassing $100,000 for the first time and some major altcoins logging massive gains. 

HOOD shares surge 

Robinhood’s shares are up 15.31% in pre-market trading after surging by nearly 5% on Wednesday. 

The company’s market cap is currently approaching the $50 billion mark.