Robinhood’s Strategic Triumph: Crypto Revenue Soars 339%, Market Cap Eclipses Coinbase

Robinhood Markets (NASDAQ: HOOD), the popular retail trading platform, announced a remarkable 339% year-over-year increase in its cryptocurrency trading revenue for the third quarter. This impressive growth underscores the resounding success of the company’s aggressive strategy to deepen its footprint in digital assets and expand its global market reach.

Exceptional Q3 Financial Performance

The latest financial disclosures reveal Robinhood processed a staggering $80 billion in cryptocurrency trading volume during Q3. This surge translated into $268 million in crypto-related revenue, a significant leap from the $61 million recorded in the same period last year.

Beyond its crypto division, Robinhood delivered a stellar overall operational performance. The company reported adjusted earnings per share (EPS) of $0.61, comfortably surpassing Wall Street’s consensus estimate of $0.53. Total net revenue also exceeded expectations, reaching $1.27 billion against market projections of $1.21 billion.

Despite these outstanding results, Robinhood’s stock experienced a modest 2% dip in after-hours trading. However, the broader picture remains overwhelmingly positive, with HOOD shares having surged approximately 260% since the beginning of the year.

New Ventures Propel Robinhood Past Coinbase in Valuation

Driving this robust growth are strategic expansions into new business areas. Jason Warnick, Robinhood’s Chief Financial Officer, commented on the quarter’s achievements: “The third quarter marked another period of strong, profitable growth. We continued to broaden our business footprint, successfully launching two significant new ventures: prediction markets and the Bitstamp exchange. Both are already generating annualized revenues exceeding $100 million.”

Warnick further highlighted a strong start to the fourth quarter, noting that October saw record-breaking trading volumes across stocks, options, prediction markets, and futures. Margin balances also climbed to new highs, signaling sustained momentum.

This powerful operational momentum has propelled Robinhood’s market capitalization to an impressive $126 billion. In a significant competitive shift, Robinhood has now successfully surpassed rival cryptocurrency exchange Coinbase (NASDAQ: COIN) in market valuation, following Coinbase’s own strong earnings report last week.