Robinhood posts 78% drop in crypto profits in third quarter
Crypto revenue from the no-charge trading platform Robinhood fell 78% in the third quarter of this year, earning just US $ 51 million during that period, according to the company’s third quarter report released. Tuesday. This is compared to the $ 233 million the company earned in the previous quarter when the market peaked in the bull run, from which the market spent much of the third quarter recovering. .
- The company attributed this in particular to a drop in the price of Dogecoin, the memes-based cryptocurrency whose explosion in popularity earlier in the year helped boost strong listings at the company. The price of Dogecoin jumped around 900% in less than a month in May to an all-time high of US $ 0.7376, although it declined rapidly in the months that followed and has steadily declined. stagnate around US $ 0.20 since then, according to data from CoinMarketCap. .
- “In the second quarter, the story was about crypto, specifically Doge,” CFO Jason Warnick said on a call with reporters.
- Robinhood earned a total of $ 365 million in the quarter, down from the $ 565 million earned last quarter, but still higher than its third quarter profit last year. The company recorded a pre-tax income loss of US $ 1.37 billion, most of it in the form of stock-based compensation expense based on the company’s initial public offering earlier in the ‘year.
- Following the release of the disappointing earnings report, Robinhood’s share price fell 8% after-hours, closing the day at US $ 39.57, according to data from MarketWatch.