Robinhood Weighs Crypto Holdings Amid Strong Q3 Performance

Trading platform Robinhood Markets remains undecided on whether to buy and hold cryptocurrencies on its balance sheet, despite the move being seen as a way to strengthen ties with the broader crypto community. 

The topic was addressed by Shiv Verma, the company’s Vice President of Finance and Strategy, during the company’s third-quarter earnings call on Wednesday.

Verma acknowledged the growing influence of crypto within Robinhood’s ecosystem, noting that the company continues to evaluate the idea carefully. “We like alignment with the community. We are a big player in crypto. We want to keep doing it,” Verma said. “But what we always try to figure out is: Is it the right thing for shareholders as well?”

Balancing Community Alignment and Shareholder Interests

The discussion comes as crypto treasury companies, firms that hold digital assets such as Bitcoin or Ethereum as part of their corporate reserves, have become one of Wall Street’s hottest trends. These companies have drawn billions in investment and, in many cases, seen sharp increases in their share prices.

However, analysts warn that the growing number of firms adopting this strategy could soon saturate the market. As more competitors enter, some may need to take on higher risks or even pursue mergers and acquisitions to stay profitable.

Verma emphasized that while adopting a crypto treasury model could align Robinhood with the crypto community, it would also come at a cost. “If we were to put Bitcoin or another cryptocurrency on our balance sheet, it has the positives of alignment, but it does take up capital,” he said. “Is it the best use of our capital? There’s a lot we’re doing — new products, growth initiatives, investing in engineering.”

Strong Earnings Signal Continued Growth

Robinhood’s third-quarter results showed solid performance across key metrics. The company reported $1.27 billion in revenue, more than double the amount recorded during the same period last year. A major contributor to this surge was a 300% increase in crypto-related revenues, which reached $268 million.

Despite this momentum, Verma stressed that Robinhood has not yet made a final decision on holding crypto. “Our shareholders can already buy Bitcoin directly on Robinhood,” he noted. “So are we making that decision for them? We have this debate constantly, and the short answer is — we’re still thinking about it.”