Robin Hood Markets (NASDAQ:HOOD) shares declined in after-market trading, after the company announced revenues below expectations.
This comes in conjunction with Bitcoin's rise above the $35,000 level in the past 24 hours.
Robinhood attributed this decrease in revenue to the decline in trading volume in cryptocurrencies, which negatively affected its revenues generated from trading operations.
The company announced net revenues of $467 million, a figure different from analysts' expectations, which had expected an average of $478.9 million. Despite this, this number represents an increase of 29% compared to the same period last year.
Transaction-based revenues decreased by 11% compared to the previous year, reaching $185 million. This decline is due to a significant decline in the virtual trading volume of cryptocurrencies, which witnessed a 55% decline over the course of the year, Robinhood announced on Tuesday in its statement.
The company's shares closed trading yesterday with an increase of 1.77%, while declining by more than 8% in trading after the closing hour.
The company, which is considered a pioneer in commission-free trading applications, announced its intention to launch a cryptocurrency trading platform in the European Union, in addition to brokerage operations in the United Kingdom in the coming weeks, as it seeks to expand on a global level.
Robinhood gives users the ability to trade several cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Shiba Inu. Last June, Robinhood announced that it would remove three currencies from its cryptocurrency trading platform, namely Solana, Cardano, and Polygon, after a prominent regulatory crackdown on some of the largest trading platforms in this sector.
The company targets small traders, and had previously benefited from the increased interest in cryptocurrency trading during the Covid-19 pandemic, but this interest declined after a series of high-profile failures that shook the crypto market when the FTX platform went bankrupt - which sparked fraud accusations and led to... The trial of its founder, Sam Bankman, led to a sharp decline in the prices of digital currencies, including Bitcoin, whose value reached below $16,000.
Cryptocurrencies at 11:25 AM Saudi time
The combined market value of the crypto market during these moments of today’s trading amounted to approximately $1.33 trillion. The trading volume reached about $46.79 billion, according to Investing Saudi Arabia data.
Bitcoin rose during the last 24 hours to the levels of $35,276, by 0.9%, while recording weekly gains of 2.5%. Its market value now stands at $688 billion.
While Ethereum, the largest digital currency by market value after Bitcoin, declined by about 0.9% during the last 24 hours, reaching $1,878, with weekly gains of 4.1%, and a market value of about $225 billion.
The price of Binance Coin BNB/USD fell by 2.7% to record $245.
While Ripple lost approximately 2.5% of its value, recording $0.67494, and jumped by 15.8% in the last 7 days.
Solana rose by 4.9% in the last 24 hours to $43,719, and is rising by 13.65% in the last 7 days.
Cardano witnessed a decline to $0.3580, by 1.1%, while it rose in the last 7 days by 23%.
At the same time, Dogecoin fell to the level of $0.073709, by 2%.
