Bitcoin News Today: Robinhood's Earnings Surge Can't Stem Investor Exodus as Crypto Woes Deepen

Robinhood Markets Inc. (NASDAQ:HOOD) shares plummeted over 10% in premarket trading on Friday despite the company reporting record third-quarter earnings and a 339% surge in crypto trading revenue, according to Parameter. The decline mirrored a broader slump in crypto-linked equities, with Coinbase Global Inc. (NASDAQ:COIN) falling more than 6% and Galaxy Digital Holdings Ltd. (TSX:MD) dropping 4%, per Cryptopolitan. The selloff reflected growing investor anxiety over U.S. job market data, escalating trade tensions, and an unprecedented 37-day government shutdown, the Cryptopolitan piece added.

Robinhood's Q3 results highlighted both strength and uncertainty. Parameter reported that total revenue doubled to $1.27 billion, exceeding analyst estimates of $1.2 billion, while earnings per share reached 61 cents, surpassing the 51-cent forecast. The company said crypto revenue alone jumped to $268 million, driven by $80 billion in trading volume, accounting for 21% of the company's quarterly income.

CFO Jason Warnick attributed the growth to "record monthly trading volumes across equities, options, prediction markets, and futures," though he warned of potential margin pressures as full-year expenses approach the top end of guidance, as Benzinga reported.

Amid the financial success, Robinhood's leadership remains under scrutiny. The company's crypto treasury strategy is still in flux, with Treasurer Shiv Verma stating during the earnings call that the firm is "actively looking at" Bitcoin as a balance sheet asset but offering no timeline for a decision, according to Cryptopolitan. Meanwhile, CFO Warnick's announced retirement next year has amplified concerns about leadership continuity as Robinhood shifts toward wealth management and tokenized assets, a point highlighted by Benzinga.

The firm's expansion into tokenized stocks and prediction markets is gaining traction. CEO Vladimir Tenev revealed "phase one" of a rollout to support tokenized equities, with future plans to enable secondary trading on platforms like Bitstamp, Cryptopolitan reported. However, he acknowledged interoperability challenges, noting that tokenized shares are not yet compatible with DeFi protocols, as CoinCentral noted. The Bitstamp acquisition, finalized in June, has already generated $100 million in annualized revenue and expanded Robinhood's regulatory footprint across 50 countries, Parameter reported.

The broader crypto sector faces headwinds as companies holding Bitcoin or Ethereum grapple with unrealized losses. Firms like Metaplanet and Sharplink, which purchased BTC during the April-July price rally, now see their holdings depreciate amid the October downturn, according to Cryptopolitan. Robinhood's stock, which had surged 280% year-to-date, fell below $140 in after-hours trading despite the earnings beat, signaling fragile investor confidence, Parameter noted.