No other plan to put money into crypto, says Robinhood CFO
Trading platform Robinhood has no immediate plans to spend more money on crypto assets, according to the company’s chief financial officer.
“There are no strategically compelling reasons for our business to invest a significant amount of our corporate cash in cryptocurrencies,” Robinhood Chief Financial Officer Jason Warnick told the network’s virtual summit. chief financial officers of the Wall Street Journal.
This adds Warnick to the list of CFOs who have been skeptical about incorporating cryptocurrencies into their companies’ balance sheets, such as Twitter CFO Ned Segal. While some worry about the continued volatility of these assets, others simply cannot incorporate them into their company’s investment policy. On the other hand, companies such as Tesla, Block Inc., and MicroStrategy have been making high profile Bitcoin purchases, pumping hundreds of millions, if not billions of dollars into the cryptocurrency.
Intimidated despite the request
Another factor contributing to Robinhood’s reluctance to further engage in crypto is its regulatory status. Warnick noted that the company is looking to regulators for advice on how it should approach crypto assets. “We’re a highly regulated company in a highly regulated industry, and we think it’s important that we get a little more clarity from regulators,” Warnick said.
It is for this reason that Robinhood has neglected to add new cryptos to its current offerings, which include Bitcoin, Dogecoin, and Litecoin. “It’s not lost on us that our customers and others would love to see us add more parts,” Warnick said. For example, customers have been pushing for the platform to carry Shiba Inu since at least October last year.
Crypto trading on the way out
Finally, the disappearance of crypto trading as a preferred feature for users has also led the company to consider pumping the brakes. While Robinhood generated $51 million in revenue from crypto transactions in its most recent quarter, that’s down more than three-quarters from the previous quarter’s value of $233 million. The company’s share price has also suffered as a result, falling from a high of $70 in August 2021 to around $25 in December. However, the company as a whole had grown from $1.4 billion in revenue at the end of 2020 to around $6.16 billion in cash and cash equivalents at the end of September last year. .
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