Robinhood reported a profitable second quarter in 2024, with a 40% increase in revenue year-over-year, totaling $682 million, driven by renewed interest in crypto trading.

The firm’s crypto transaction-based revenues hit $81 million, showing a 161% hike compared to the same period last year. This growth is attributed to heightened trading volumes, indicating a growing enthusiasm for cryptocurrencies among retail investors.

Crypto trading volumes on the platform rose 137% compared to Q2 2023, although they were down 40% from the first quarter of 2024. This decline coincided with a drop in monthly active users during Q2, as noted in the report.

Robinhood’s crypto assets under custody increased by 57% year-on-year, currently standing at $20.6 billion.

Transaction-based revenue across all of the platform’s offerings jumped 69% year-over-year, with options accounting for the largest revenue stream at $182 million. Equities revenue also saw a rise of 60%, amounting to $40 million.

According to the firm, strategic purchases have strengthened its market position.

“This quarter, we kept up the pace with rapid product launches and a relentless drive to provide top value for our customers,” said Vlad Tenev, CEO and co-founder of Robinhood.

In June, Robinhood finalized an agreement to acquire crypto exchange Bitstamp, Ltd. The acquisition, subject to regulatory approval, is expected to enhance Robinhood’s operational scope, leveraging Bitstamp’s 50 active licenses and registrations throughout the EU, UK, US, and Asia.

In July, Robinhood also acquired Pluto Capital Inc., an AI-driven investment research platform, to enhance its retail investment offerings using AI.

The earnings report comes as Robinhood faces some regulatory challenges. In May, the exchange’s cryptocurrency division received a Wells Notice from the U.S. Securities and Exchange Commission, indicating an impending enforcement action against the trading platform. The SEC’s preliminary findings suggest that Robinhood had violated U.S. securities laws.

The notice received immediate backlash from the crypto community, with the Digital Chamber, a digital asset sector trade association, expressing concerns over the SEC’s regulatory approach.

Despite these challenges, the firm has continued to expand its offerings, with plans to offer its cryptocurrency futures product in the U.S. and Europe.

For more updates and news on the cryptocurrency market, keep exploring Global Crypto News.

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