Key Points
- Robinhood, the American financial services company, has no plans to hold Bitcoin as an investment.
- Despite market volatility, Robinhood’s cryptocurrency division reports a 165% revenue surge.
Robinhood’s Stance on Bitcoin
Robinhood, a renowned American financial services company, has decided against holding Bitcoin as an investment, despite the growing trend of institutional adoption.
In an interview, Robinhood CEO, Vladimir Tenev, stated that while the idea of holding Bitcoin does come up within the company, they have no plans to do so beyond maintaining minimal reserves to facilitate client trading activities.
Reasons Behind the Decision
Tenev clarified that there are considerations influencing their approach, such as the need to account for Bitcoin and its presence on the balance sheet. This suggests that while Bitcoin is not entirely ruled out, the company is cautious due to the volatile nature of cryptocurrency and possibly due to a unique growth strategy.
Meanwhile, other firms like MicroStrategy and Metaplanet are consistently increasing their Bitcoin investments, Robinhood seems to be taking a step back, but not completely. This could be due to the risk associated with digital assets.
Impact on Stock Price
On the price front, Bitcoin was trading at $94,038.28, marking a 1.92% decline over the past 24 hours. Concurrently, Robinhood’s shares saw a 2.17% dip, closing at $37.50. Despite this, the stock maintains a consensus price target of $38.19, with projections ranging from a bullish $55 by Morgan Stanley to a more conservative $11 by Barclays.
