Robinhood’s cryptocurrency revenue falls 30% year on year

In the first quarter of 2023, Robinhood’s crypto-related revenue fell 30% year over year to $38 million, the company said in its report.

The company recorded lower crypto-transaction revenue only in the fourth quarter of 2020 ($12 million). Since then, the figure has ranged from $48 million to $233 million.

Compared with the fourth quarter, the metric was down 1%.

Total revenue from operations in the first quarter declined by 5%, to $207 million.

Aggregate revenue rose 16%, to $441 million. This was driven by a 24.5% rise in net interest income ($208 million).

Net loss was $511 million versus $166 million in October-December.

The decline in revenue from crypto-focused activities at Robinhood was attributed to a drop in the number of orders executed (less than 1% QoQ) with funds in settled trades up 6%.

The volume of digital assets held in custody rose 37%, to $12 billion, as market conditions improved.

The online broker said users from 130 countries downloaded the Robinhood Wallet app from the Apple App Store more than 100,000 times.

In 2023 the company launched Robinhood Connect — a new way to fund Web3 wallets.

As reported, the online broker will pay up to $10.2 million in fines for operational and technical outages that harmed investors.