Trading platform Robinhood Markets has yet to decide whether to buy and hold cryptocurrency, despite the move potentially strengthening its ties to the crypto community, an executive said.
“We’ve spent a lot of time considering this,” Robinhood’s Vice President of Finance and Strategy, Shiv Verma, said during the company’s third-quarter earnings call on Wednesday when asked about the possibility of holding crypto.
“We value alignment with the community. We’re a major player in crypto and want to continue that. We appreciate that our customers are actively engaged,” he added.
“What we always try to figure out is: Is it the right thing for shareholders as well?”
Companies that buy and hold cryptocurrency, known as crypto treasuries, have emerged as one of Wall Street’s hottest trends this year, attracting billions in investment and driving up the stock prices of firms that embrace this strategy.
Some analysts have cautioned that the sector could face challenges as more similar companies enter the market, suggesting that crypto treasury firms may need to take greater risks or pursue acquisitions to stay competitive.
Verma noted that if Robinhood were to hold Bitcoin or another cryptocurrency on its balance sheet, “it aligns you with the community, but it also ties up capital.”
“Is that the best use of our capital?” he asked. “We have many priorities—from launching new products and driving growth to investing in engineering.”
He added, “Our shareholders can also buy Bitcoin directly on Robinhood. So are we really making that decision for them?”
“We have this debate constantly, and I think the short answer is we’re still thinking about it.”
“There are pros and cons to both approaches,” he added. “It’s something we’ll continue to evaluate actively.”
Robinhood’s third-quarter earnings exceeded expectations, with revenue doubling from last year to $1.27 billion. The growth was fueled by a more than 300% jump in crypto revenue, which reached $268 million.
