Robinhood Has Made More Than $50 Million in Crypto Trades But Won't Invest Its Own Money. Here's Why. The CFO's stance is similar to that of other finance chiefs, including Twitter Inc. CFO Ned Segal.
By Amanda Breen •
Though the crypto craze shows no signs of slowing, retail-trading platform Robinhood Markets Inc. isn't willing to put significant amounts of corporate cash into crypto assets in the near future, Fox Business reports.
Robinhood's Chief Financial Officer Jason Warnick spoke on the matter at The Wall Street Journal's virtual CFO Network Summit on Wednesday, saying, "There aren't compelling reasons strategically for our business to put any meaningful amount of our corporate cash into cryptocurrencies."
Warnick's stance is similar to that of other finance chiefs, including Twitter Inc. CFO Ned Segal; they share concerns about the volatility and limitations that come with such assets. But other companies like Tesla Inc. and Block Inc. have enthusiastically thrown corporate cash into Bitcoin or alternative digital assets.
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Despite the trading platform's own hesitancy to get into crypto, its users have already been investing in Robinhood's Bitcoin, Dogecoin and Litecoin offerings. Per Fox Business, Robinhood reported $51 million in revenue from crypto trades during its most recent quarter.
According to Warnick, while customers would like to see even more crypto options on the platform, such as Shiba Inu coin, for now, the company will wait for regulators to comment on the treatment of crypto assets. "We're a highly regulated company in a highly regulated industry, and we think it's important that we get a bit more clarity from regulators," he said.
Robinhood might not have committed to expanding its crypto offerings, but that hasn't stopped rumors about the new listing from circulating on Twitter, with one tweet from business news handle @ZeroHedge claiming it might come as early as February.
Related: Robinhood Markets, Inc. (HOOD) Outpaces Stock Market Gains
Per CoinDesk, Shiba Inu jumped 16% today, adding to the overall crypto-market surge of the past 24 hours.
