Robinhood is exercising caution in adding digital assets to its balance sheet, even as digital asset treasuries (DATs) gain popularity. During the third-quarter earnings call, incoming CFO Shiv Verma highlighted that the company is still assessing the potential benefits and drawbacks of holding cryptocurrencies like Bitcoin. Despite this, Robinhood's crypto business is thriving, with Q3 crypto revenue soaring to $268 million, marking a 300% increase year-on-year.
Verma emphasized that holding cryptocurrencies could restrict capital that might be more effectively utilized elsewhere, although customers can still purchase Bitcoin directly through Robinhood's platform. This approach contrasts with firms like MicroStrategy, which have amassed significant Bitcoin reserves. Meanwhile, the broader crypto market has faced challenges, with Bitcoin's price falling below $100,000 and the total market value dropping by over $1 trillion.
Robinhood Hesitant to Add Crypto to Balance Sheet Despite DAT Trend
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