Robinhood Takes Stake in Crypto.com for Prediction-Markets Expansion

Rohan Hood has taken a minority stake in Crypto.com as part of a strategic partnership to expand its prediction-markets business. The companies announced their multi-year agreement on September 8, and Robinhood will receive equity stakes in both Crypto.com and OG.com, the prediction-market platform spun out of Crypto.com.

The valuation of Crypto.com was set at $20 billion by Citadel Securities' recent investment, while OG.com is valued at $5 billion. This partnership goes beyond an equity investment as Robinhood will route selected football event contracts through OG.com's Commodity Futures Trading Commission-regulated derivatives exchange and clearinghouse.

The expansion of prediction markets comes as they become an increasingly important contributor to Robinhood's business, with customers trading 13.6 billion event contracts in the second quarter generating approximately $156 million in revenue, a 50% increase from the previous quarter.