Online trading platform Robinhood (HOOD) has reported a decline in its cryptocurrency trading revenue for the first quarter of 2023. The company’s earnings results showed that crypto trading revenue dropped by around 30% compared to the same period in the previous year, down to $38 million from $54 million. However, on a quarterly basis, the decline was only 1%.
Despite the decline in crypto trading revenue, HOOD’s overall trading revenue across all its businesses increased by 47.5% year-over-year to $441 million. The company also reported that it held approximately $11.5 billion worth of crypto in assets under custody, reflecting a 36% increase from the previous quarter. This increase is attributed to the rebound in the cryptocurrency market in the early part of 2023.
In Thursday morning trading, HOOD shares were up by 6.7%. The company’s report indicates that it continues to hold a significant amount of cryptocurrency assets, which may be a positive sign for investors in the platform.