Robinhood saw crypto transaction revenue fall by 24% in Q4 2022. The trading app company was seemingly affected by the harsh crypto market. Its crypto-linked revenues fell to 39 million USD in Q4 2022, down by 9 million from Q3 2022. This is not good news for the company or the crypto industry.
Robinhood revenue is down by 24 per cent
As per the reports, Robinhood crypto transaction revenue has decreased by 24 per cent to 39 million USD sequentially during the fourth quarter of 2022. This trend was part of a larger decline that saw all transaction-based revenue fall 11 per cent to 186 million USD.
Robinhood also said its assets under custody fell 4 per cent sequentially to 62 billion USD. Lower market values in both the stock and crypto markets drove this trend. Ongoing deposits partially mitigated losses, the firm reported.
Robinhood’s balance sheets indicated that the firm had 8.4 billion USD of assets related to its user cryptocurrencies safeguarding obligation at the end of 2022. The firm also noted that it has begun to roll out its wallet to more than a million waitlisted users. On Jan 19, 2023, they made an announcement about the wallet.
SBF’s Robinhood stock hags in the balance sheet
As you know, Robinhood saw crypto transaction revenue fall by 24% in Q4 2022. On the other hand, Robinhood’s board of directors has also approved a proposal to buy back up to 55 million shares previously purchased by a Sam – Bankman Fried holding company last May.
The US Department of Justice, also known as DOJ, seized the shares in early January. Bankman Friend bought more than 56 million shares for 648 million USD. Robinhood is now discussing with the agency to facilitate the purchase, with the total share valued at around 600 million USD at current prices.
Disgraced FTX co-founder Bankman Friend and Gary Wang bought the shares via Emergent Technologies using loans directly taken from FTX’s sister trading company Alameda Research. In its earnings reports, Robinhood said the timeline for the transaction remains unclear.
Robinhood did not immediately return a request for comment. The company also said that since there is a limited precedent for this type of situation, we can’t predict when or if the share purchase will occur. They will provide updates as appropriate.
What are your thoughts on the downfall of Robinhood’s crypto transaction revenue? Do you think they could increase their revenue in Q1 2023? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.