Journalist
Posted:
- Robinhood has decided not to hold Bitcoin as an investment.
- The company’s cryptocurrency division reports a 165% increase in revenue despite the volatility of the Bitcoin market.
While global companies are increasingly embracing Bitcoin [BTC] as a strategic asset, some notable players remain hesitant. One of them is Robinhood, an American financial services provider.
Robinhood CEO says no to Bitcoin
During a interview with Anthony Pompliano, Robinhood CEO Vladimir Tenev confirmed that the trading platform has no plans to hold BTC as an investment.
This cautious stance is in stark contrast to the growing trend of institutional adoption, raising questions about Robinhood’s long-term vision in the evolving cryptocurrency landscape.
Tenev acknowledged that the idea of holding BTC pops up from time to time within the company, reflecting the growing involvement in the cryptocurrency space.
In addition to maintaining minimum reserves to facilitate clients’ trading activities, Tenev clarified:
“We don’t rule it out. We haven’t done it yet. Not in the business of being an investment manager.”
This indicates that while BTC is not completely off the table, certain considerations are influencing Robinhood’s approach.
“We have to do the accounting for it, and it’s essentially on the balance sheet anyway, so there’s a real reason for it.”
So while companies like MicroStrategy and Metaplanet are taking their Bitcoin game to the next level time and time again, Robinhood appears to have taken a step back, but not completely.
This could be due to the volatile nature of cryptocurrency or simply a unique growth strategy that the company employs just like Microsoft.
So if Robinhood calculates the risk associated with the digital assets, it could have gone the other way.
Impact on the share price
Meanwhile, things were looking a bit bleak for the king coin in terms of prices. At the time of writing, Bitcoin was trade at $94,038.28, down 1.92% in the past 24 hours.
On the other hand, Robinhood stock saw a dip of 2.17% to close at $37.5o at the time of writing.
Despite this, the stock maintains a consensus price target of $38.19, with forecasts ranging from a bullish $55 from Morgan Stanley to a more conservative $11 from Barclays.