Robinhood, the crypto-friendly trading platform, has reported a 75% increase in crypto trading volume in November compared to October. The company disclosed this development in a Form 8-K filing with the US Securities and Exchange Commission (SEC) on December 4th, stating that crypto trading volumes in November exceeded October by more than 75%.
This increase at Robinhood did not reflect in stock and options contract trading volumes, which remained nearly flat compared to October. Users note that this reverses a period in which Robinhood reported a 55% decrease in nominal crypto market volumes in its third-quarter results.
As a result, Robinhood’s third-quarter revenue reached $467 million, falling below analyst expectations. Transaction-based revenues also decreased by 11% on an annual basis, dropping to $185 million due to a decline in crypto market volumes in 2022.
Robinhood may aim to be more profitable in the fourth quarter, benefiting from the crypto market rally that reached $1.6 trillion in total volume over the past two months, representing a 40% increase. Vlad Tenev, the co-founder and CEO of Robinhood, emphasized in a earnings report released in November that the platform could achieve nine-figure annual revenues.
Since the beginning of 2023, Robinhood’s stock prices have shown an 18% increase. However, after surpassing $13, the highest level in 2023, the company’s shares have been on a downward trend since mid-July. At the time of writing, Robinhood shares are trading at $9.95 in after-hours trading, representing a 2.5% increase in the past 24 hours. In addition to launching stock listings in the UK markets, the company plans to introduce futures trading services pending regulatory approval in 2024.
