Robinhood is set to make significant strides in the cryptocurrency space, bolstering its crypto team, launching crypto trading services in the European Union, and acquiring the cryptocurrency exchange Bitstamp for a hefty sum of $200 million.
According to a Wednesday report from Bernstein analysts, these strategic moves are expected to propel Robinhood’s operating income to an estimated $900 million in 2024, potentially driving its market value to a range of $19 billion to $23 billion by 2025.
Analysts further anticipate that Robinhood’s revenue could reach $3.4 billion by 2025, supported by favorable factors such as demographic trends. Notably, about 60% of Robinhood’s assets are held by customers under the age of 43.
The company has actively expanded its offerings to younger audiences, providing cryptocurrencies, stocks, derivatives, and savings products. This strategy seems to be paying off, as evidenced by the second quarter’s results. Cryptocurrencies contributed significantly to Robinhood’s trading revenue, reaching $81 million, a remarkable 161% increase compared to the same period last year.
