Robinhood Markets has not yet decided whether to buy and hold cryptocurrencies such as Bitcoin as part of its corporate assets. The discussion remains ongoing within the company, said Shiv Verma, Robinhood’s vice president of finance and strategy, during the firm’s third-quarter earnings call on Wednesday.
Verma explained that the company continues to assess the potential advantages and risks of adding crypto to its balance sheet. “We think a lot about this,” he said, emphasizing that the decision must balance community alignment and shareholder interests.
Balancing Community Alignment and Capital Allocation
According to Verma, purchasing and holding digital assets could strengthen Robinhood’s connection with the crypto community. However, he noted that such a move would require substantial capital investment. “While it creates alignment with the community, it also locks up capital,” Verma said. He questioned whether that would be the best use of company resources, given Robinhood’s focus on product expansion, engineering investment, and long-term growth.
Shareholders Can Already Access Crypto
Verma also pointed out that Robinhood’s customers and shareholders can already purchase cryptocurrencies directly on the platform. “Our shareholders can buy Bitcoin through Robinhood themselves,” he noted, suggesting that the company may not need to make that investment on their behalf. He added that the internal debate over whether to hold crypto remains active. Meanwhile, the team continues to make a careful assessment of both sides of the issue. “There are pros and cons, and we’re still thinking about it,” he said.
Crypto Treasury Trend Faces Growing Competition
Across Wall Street, several companies have adopted a crypto treasury model, choosing to hold digital assets as part of their reserves. This approach has attracted billions in investments and boosted share prices for many firms. However, analysts have warned that the space could face pressure as more companies pursue similar strategies. Some may need to take greater risks or consolidate through acquisitions to stay competitive.
Strong Quarter Driven by Crypto Trading
Robinhood’s debate over holding crypto comes amid a period of strong performance for its trading business. The company’s third-quarter revenue rose to $1.27 billion, doubling from the same period last year. A major driver of this growth was a 300% increase in crypto-related revenue, which reached $268 million in the quarter.