Robinhood cautious on adopting corporate bitcoin treasury: ‘Is it the best use of our capital?’
Robinhood is debating whether holding Bitcoin as a corporate treasury is the best use of capital despite strong crypto revenue.Summary
Robinhood reported a strong third quarter with crypto trading revenue jumping 129% year-over-year, contributing significantly to overall revenues of $1.27 billion. Despite this success and the trend of other public companies adopting digital asset treasuries (DATs), Robinhood executives expressed caution about implementing such a strategy themselves. Shiv Verma, SVP of finance and strategy, noted that while holding Bitcoin aligns them with the crypto community, the primary question is whether it is the "best use of our capital" compared to investing in new products or engineering. She confirmed the company is actively debating the pros and cons. Separately, CEO Vlad Tenev reiterated Robinhood's commitment to bridging traditional finance and crypto, expecting a framework for asset tokenization in major markets within five years. Following the earnings report, Mizuho Securities raised its price target on HOOD, though the stock traded down nearly 10% at the time of publication.
(Source：The Block)