The well-known US-based stock trading app Robinhood (HOOD) saw a 224% rise in its first-quarter cryptocurrencycurrency trading volume compared to the same period previous year, hitting $36 billion.
With cryptocurrency-based transactions 232% greater than the previous year and overall transaction-based revenue reaching $329 million, up 59% from the previous year, the increase in cryptocurrency-related revenue came to $126 million.
With $618 million in Q1 revenue, Robinhood exceeded expectations, leading to a 7% rise in the share price. After hours trading saw a 3% increase in the stock market compared to its closure. In addition, the business revealed a 78% increase in cryptocurrencycurrency custody, reaching $26.2 billion overall.
Despite receiving a Wells Notice over its cryptocurrencycurrency division from the SEC, Robinhood exceeded projected sales and earnings. In after-hours trading, the company’s stock increased by 7%, but Coinbase shares saw a slight decline.
The exceptional performance of Coinbase (COIN), which also reported strong first-quarter profits mostly due to favorable conditions in the cryptocurrencycurrency market, is reminiscent of other companies, such as Robinhood.
Jason Warnick, the CFO of Robinhood, expressed his dissatisfaction with the Wells Notice, but he reassured clients that the company’s cryptocurrencycurrency division was still running well.
It is clear from Robinhood’s excellent first quarter that the company’s strategy to extend its cryptocurrencycurrency products has been successful in driving significant revenue growth and boosting investor confidence.
Also read: CFTC Chair Expects More Enforcement Against Crypto Firms
