Key Points
- Robinhood CEO, Vladimir Tenev, confirms that the platform has no plans to hold Bitcoin as an investment.
- Despite a 165% revenue surge in Robinhood’s cryptocurrency division, Bitcoin market volatility influences their cautious stance.
Robinhood’s Stance on Bitcoin
While many global corporations are integrating Bitcoin (BTC) as a strategic asset, Robinhood, an American financial services firm, remains hesitant. In a recent interview, Robinhood CEO Vladimir Tenev revealed that the platform has no intentions of retaining BTC as an investment. This cautious approach starkly contrasts with the increasing trend of institutional adoption, sparking questions about Robinhood’s future vision in the rapidly evolving crypto landscape.
Tenev admitted that the concept of holding BTC occasionally arises within the company, reflecting its expanding involvement in the crypto sector. However, aside from maintaining minimal reserves to facilitate client trading, Tenev stated, “We wouldn’t rule it out. We haven’t done it thus far. Not in the business of being an investment manager.” This suggests that while BTC isn’t entirely dismissed, certain considerations influence Robinhood’s strategy.
Impact on the Stock Price
Meanwhile, the price of Bitcoin was experiencing a slight downturn, trading at $94,038.28, marking a 1.92% decrease over the past 24 hours. In contrast, Robinhood’s shares experienced a 2.17% dip, closing at $37.50. Despite this, the stock maintains a consensus price target of $38.19, with predictions ranging from a bullish $55 by Morgan Stanley to a more conservative $11 by Barclays.