Robinhood’s Crypto Revenue Hits Lowest In 3 Years, But It Still Supports Crypto
In the second quarter of 2021, Robinhood’s net revenue from trading dogecoin (DOGE) was 32%. However, since then, its crypto revenues have decreased significantly, dropping from $233 million to $23 million in the third quarter of 2023. Despite this decline, Robinhood continues to expand its presence in the decentralized money sector and plans to launch in Europe. The company is also relisting coins that were previously considered unregistered securities by the US SEC and adding new cryptocurrencies not available in the US. Robinhood remains positive about its strategy and sees potential in assets like dogecoin.
US SEC Holds Calls With Spot Bitcoin ETF Hopefuls
The US Securities and Exchange Commission (SEC) recently held telephone conference calls with several applicants for spot bitcoin exchange-traded funds (ETFs). The calls discussed the application process and the required structure for these ETFs. The SEC is concerned about potential malfeasance involving cryptocurrencies and currently does not allow broker-dealers to trade spot bitcoin directly. The regulator has asked issuers to submit amended filings by December 29. While there is no certainty about the timing, it is likely that approval will be granted before the next deadline on January 10.
Traders and Institutions Turned to OTC Market in 2023 in Search of Stability
Many traders and institutions have shifted their focus to the over-the-counter (OTC) market due to ongoing struggles faced by centralized exchanges in 2023. According to a report by CCData, centralized exchanges like Poloniex and Binance.US showed significant variability in spreads during a crisis, while OTC markets demonstrated consistency and stability. This shift towards OTC markets reflects a desire for a more secure and stable market structure. OTC markets have shown uniform standard deviations across different trade sizes, indicating a reliable trading environment.
Arkon Energy Raises $110M to Grow US Bitcoin Mining Capacity, Launch AI Cloud Service in Norway
Data center infrastructure company Arkon Energy has raised $110 million in a private funding round to expand its operations. The funds will be used to acquire additional capacity in new data centers and develop an artificial intelligence (AI) cloud service project in Norway. Arkon Energy aims to increase its total megawatts by 130% by mid-2024 and provide specialized physical infrastructure for the growing AI sector. The company sees the US as an attractive market due to high customer demand, a mature energy industry, and political and regulatory stability. Arkon Energy operates in multiple regions and serves both bitcoin miners and AI clients.
Hot Take: Robinhood’s Crypto Revenue Decline Reflects Market Volatility
Robinhood’s decline in crypto revenue is a reflection of the volatile nature of the cryptocurrency market. While fees from trading dogecoin were significant at one point, they have decreased significantly since then. However, Robinhood remains committed to supporting cryptocurrencies and expanding its operations. The company’s plans to launch in Europe and relist coins demonstrate its continued interest in the crypto space. Despite the challenges, Robinhood sees potential in assets like dogecoin and believes it is still early innings in the crypto industry. As the market continues to evolve, Robinhood aims to adapt its strategy and grow its market share.
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