Bitcoin and Ethereum are still ranging in a confined range.
Shares gained almost 4% in after-hours trading, reaching about $12.
Even as Crypto winter warms up, the investment app Robinhood is still feeling the effects. The firm said on Wednesday that its revenue from cryptocurrency transactions had dropped by 12% from the previous quarter to $51 million. The entire crypto sector is going through a tough phase as bears are not letting the bulls overtake them. Bitcoin and Ethereum are still ranging in a confined range.
CFO Jason Warnick stated:
“We’re certainly a participant in the broader crypto market, and when overall trading volumes in crypto are down, we see that reflected in the activity on Robinhood as well.”
Positioning For a Turn-Around
Warnick said that Robinhood’s self-custody “Web3 wallet” enables clients to trade and exchange cryptocurrencies with no network costs and that the business would continue to “invest in the space and make sure that we’re well positioned for when this turns around.”
With net revenue of $361 million, Robinhood recorded a loss of $175 million for the third quarter. Additionally, September saw a decrease in monthly active users of 1.8 million, bringing the total down to 12.2 million. Shares gained almost 4% in after-hours trading, reaching about $12.
CEO Vlad Tenev stated:
“We delivered on top feature requests for customers, including advanced charts, options in cash accounts, instant withdrawals and our self-custody, Web3 wallet.”
Robinhood has been having a tough time since the severe drop that followed the speculative crypto and meme-stock hype cycle last year. The firm stated in August that 23% of its workforce will be let off due to disappointing second-quarter profits.