Crypto Strategy at Robinhood

Cryptocurrency is becoming increasingly important for Robinhood, but CEO Vladimir Tenev clarified in a Monday interview that the company has no plans to hold bitcoin for investment.

Tenev acknowledged that the idea of holding bitcoin comes up occasionally due to Robinhood’s growing interest in cryptocurrencies. However, aside from holding some coins for client trading needs, Robinhood will not hold BTC for investment purposes.

> “We wouldn’t rule it out. We haven’t done it thus far,” Tenev shared in an interview with Anthony Pompliano. “Not in the business of being an investment manager.”

Despite not following similar paths as companies like MicroStrategy and Tesla, known for holding bitcoin, Tenev noted that Robinhood’s stock is already highly correlated with bitcoin without holding it on their balance sheet.

Robinhood’s stock (ticker: HOOD) has seen a 202% increase this year, contrasted with bitcoin’s 110% year-to-date rise. Tenev expressed concerns that if Robinhood were to hold bitcoin, it could complicate how investors perceive the company, potentially viewing it as a “quasi, bitcoin-holding play.”

Robinhood’s Leading Position

In November, analysts from Bernstein highlighted Robinhood as the top “crypto deregulation trade” after Donald Trump’s presidential election win. They predict Robinhood’s crypto revenues will surge by 20% by the end of 2025, constituting 38% of the platform’s total revenue.

Currently, Robinhood remains conservative in its crypto offerings, with fewer digital asset options compared to competitors like Coinbase and Kraken, although this is expected to change under Trump’s presidency.

Additionally, Robinhood plans to finalize its acquisition of crypto exchange Bitstamp in the first half of 2025.