Robinhood Markets has electrified investors with its third-quarter performance, sparking serious internal discussions about potentially adding Bitcoin to its corporate treasury. This strategic consideration could fundamentally reshape the brokerage’s business model, transitioning it further from a traditional trading platform toward becoming a significant cryptocurrency participant.
Record-Setting Quarter Fueled by Crypto Surge
The trading platform delivered an impressive earnings beat for Q3. Robinhood reported earnings per share of $0.61, substantially exceeding analyst projections that ranged between $0.51 and $0.54. Total revenue reached $1.27 billion, representing a year-over-year doubling and coming in well above the anticipated $1.2 billion.
Digital assets trading emerged as the standout performer. Revenue from cryptocurrency operations skyrocketed by more than 300% to $268 million. This explosive growth propelled transaction-based revenues to $730 million, marking a 129% increase. The performance clearly signals Robinhood’s accelerating pivot toward cryptocurrency services.
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Analysts Respond with Revised Targets
Market professionals quickly adjusted their outlooks following the strong results. Citizens JMP Securities elevated its price target from $170 to $180 while maintaining a “Market Outperform” rating. Mizuho followed with a significant boost from $145 to $172, similarly reaffirming its “Outperform” stance. Cantor Fitzgerald raised its target from $130 to $155, and Keefe, Bruyette & Woods adjusted theirs to $135.
Key metrics that impressed researchers include:
- Customer growth: 26.8 million funded accounts, reflecting an annual increase of 2.5 million users
- Platform assets: $333 billion under management, a 119% surge
- Subscription services: 3.9 million Gold subscribers, representing 77% growth
Bitcoin Balance Sheet Decision: Strategic Commitment or Calculated Risk?
During the earnings call, Chief Financial Officer Shiv Verma revealed the company is actively evaluating whether to add Bitcoin to its corporate treasury. Such a move would position Robinhood alongside corporations like MicroStrategy that maintain substantial cryptocurrency reserves, potentially strengthening its connection to the volatile digital asset community.
Verma emphasized caution, noting that no final decision has been made and that the company is thoroughly examining how such an allocation would integrate with its capital strategy. Nevertheless, the serious consideration of this option marks a significant development for a platform that already generates over one-quarter of its revenue from cryptocurrency trading. This potential treasury allocation could represent either a logical evolution or a substantial gamble on an unpredictable asset class.
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