Robinhood’s Crypto Bonanza: You Won’t Believe the Numbers! 💰🚀

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In a dazzling display of financial acrobatics, Robinhood shares pirouetted upwards by a staggering 17% in the after-hours trading ballet, as its Q4 earnings pirouetted past consensus estimates, while cryptocurrency revenue soared like a phoenix, a jaw-dropping 700% year-on-year. 🎉

Ah, the $916 million net income, a veritable cornucopia of profit, reported in the results statement of February 12, marked the fifth consecutive profitable quarter for Robinhood, outshining consensus estimates by a delightful 9%. Who knew numbers could be so charming?

Crypto revenue, that glittering gem, reached a magnificent $358 million, accounting for over half of Robinhood’s $672 million transaction-based revenues — which, mind you, increased over 200% year-on-year. Crypto trading volumes, in a fit of exuberance, leaped over 450% year-over-year to a staggering $71 billion. Talk about a crypto carnival! 🎪

“Q4 was a record-breaking quarter that caps off a record-setting year in 2024,” proclaimed Robinhood’s chief financial officer, Jason Warnick, as he pointed to the company’s $1 billion revenue, $16 billion in net deposits, and an astonishing 88% year-on-year increase in assets under custody, now a princely $193 billion. One can almost hear the confetti falling!

Crypto assets under custody, too, joined the party, increasing 75% quarter-on-quarter to $35 million, while crypto trading volumes were up around fivefold compared to Q4 2023 and Q3 2024. It’s a crypto fiesta, folks! 🎊

The broader market, in a frenzy of trading activity, was largely fueled by the electrifying news of US President Donald Trump’s election win and the rising market prices. Who knew politics could be so profitable?

Robinhood (HOOD) shares, in a delightful twist, rose 4.82% during the February 12 trading session to $55.90, only to climb another 17.1% after the firm unveiled its Q4 results in a dramatic after-hours reveal, as per Google Finance data. 📈

Last June, in a move that sent ripples through the crypto pond, Robinhood agreed to acquire the Bitstamp crypto exchange in a $200 million deal, a strategic maneuver to cater to institutional investors in the United States. A match made in financial heaven!

However, this deal, like a fine wine, is still subject to regulatory approval and is expected to be finalized in the first half of 2025. Cheers to that! 🍷

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2025-02-13 02:30