TLDR
- Robinhood has added $25 million worth of bitcoin to its corporate balance sheet.
- Crypto chief Johann Kerbrat said the purchase shows the company’s commitment to the crypto community.
- The bitcoin is separate from nearly $25 billion in crypto that Robinhood holds for customers.
- Robinhood plans to launch perpetual futures for eligible U.S. users in the coming months.
- Bitcoin traded near $84,280 as investors waited for the Fed’s FOMC meeting minutes.
Robinhood has added $25 million worth of bitcoin to its corporate balance sheet. The trading platform confirmed the purchase on Wednesday, October 7.
Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto and international, shared the news. He spoke about it in an interview with The Block and at the Token2049 event in Singapore.
Kerbrat said the purchase was meant to show the company’s commitment to the crypto sector. “We care deeply about bitcoin and the ecosystem around it,” he said.
“For us, it’s more aligning our company and our vision with the crypto community,” Kerbrat added.
He also said the amount is small compared to the size of the company. “Robinhood is a massive company at this point, with a market cap in the $100 billion [range]. So the $25 million worth of bitcoin is not going to change a lot of the current trajectory of the company,” he said.
Robinhood shares closed down 1.85% at $112 on Tuesday. That gave the company a market value of about $100 billion.
Corporate Bitcoin Separate From Customer Holdings
The bitcoin purchase is separate from the crypto that Robinhood holds for its customers. The company keeps nearly $25 billion in customer-owned crypto in custody wallets.
That includes more than 185,000 bitcoin worth about $15.6 billion, according to CoinGape. Robinhood CEO Vlad Tenev had earlier said the company was considering putting bitcoin on its balance sheet.
Other public companies have also been buying bitcoin. Strategy said Monday it bought 334 more bitcoin for about $28.7 million between Sept. 28 and Oct. 4.
The average price was $85,838.80 per coin. That brings Strategy’s total holdings to 848,000 bitcoin.
Robinhood Expands Crypto Products
Robinhood has been adding more crypto services. Last week, it announced plans to offer perpetual futures, or perps, to eligible U.S. users in the coming months.
Users will be able to take long or short positions on assets including bitcoin, ether, Solana, XRP, Dogecoin, ADA, LINK and HYPE. Tenev called the product a “new chapter for U.S. derivatives.”
The company is also growing Robinhood Chain, a Layer 2 network built with Arbitrum’s technology. The chain went live on public mainnet in July. Its total value locked reached $1.05 billion as of Tuesday, according to The Block.
Robinhood has also launched Stock Tokens, which let eligible users trade 24/7 on Robinhood Chain. Kerbrat said stock token volume is already high enough to hit some caps under the SEC’s innovation exemption for tokenized U.S. equities.
Kerbrat said the platform has 28 million funded accounts, with 27 million in the U.S. and 1 million abroad. He also pointed to Robinhood’s recent crypto launch in the UK.
Bitcoin was trading near $84,280 after the news, according to CoinGape. Its 24-hour range was between $83,647 and $86,648.
Trading volume rose 16% over 24 hours as some traders sold holdings following the latest escalation in the U.S.-Iran war. Investors are now waiting for the Federal Reserve’s FOMC meeting minutes, due Wednesday.
The post Robinhood Buys $25 Million in Bitcoin as Stock Closes at $112 appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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