Robinhood Rallies with Bitcoin as SEC Rule Change Aligns
Robinhood Markets Inc.'s (NASDAQ:HOOD) shares are trading higher on Monday, coinciding with Bitcoin's surge to around $85,000, its highest level since January.
The company's stock is climbing alongside gains in Strategy, Coinbase, MARA Holdings, and other crypto-exposed names. This uptrend is likely due to the increased trading activity and investor enthusiasm for Robinhood, as it generates a significant share of its revenue from cryptocurrency trading.
Interestingly, despite Bitcoin's rally, Robinhood's Q2 crypto revenue actually declined 38% year-over-year to $100 million, as growth in other segments took over. However, the company's push into tokenized assets has been given a boost by the SEC's new 'Innovation Exemption,' which allows qualifying trading venues to offer tokenized versions of U.S. stocks without registering as traditional stock exchanges for five years.
A wave of short-seller liquidations added further fuel to Robinhood's gains, with roughly $300 million of the approximately $313 million in crypto positions liquidated over the past hour belonging to short sellers, according to CoinGlass data.