Robinhood Surges with Crypto Expansion and Bitstamp Deal

Robinhood Markets Inc. reported an impressive 700% year-over-year increase in cryptocurrency trading revenue for the fourth quarter, reaching $358 million, driving its total transaction-based revenue up over 200% to $672 million. This surge contributed significantly to Robinhood's total Q4 revenue of $1.01 billion, a 115% increase year-over-year, and net income of $916 million, reflecting a more than tenfold increase. The record-breaking performance, attributed to the resurgence in the crypto market and increased trading activity following Donald Trump's presidential election victory, sent Robinhood's shares up over 16% in after-hours trading. Robinhood expanded its crypto offerings by adding new tokens and Ethereum staking in the EU, alongside a planned acquisition of Bitstamp to bolster its institutional reach. CEO Vlad Tenev emphasized Robinhood's strategic position between traditional finance and decentralized finance, advocating for clearer regulatory guidelines to further crypto adoption. The company's strong results and positive outlook have resonated well with investors, as reflected in the stock's significant rise.