TL;DR
- Robinhood has discussed internally the possibility of holding Bitcoin but has no current plans to do so.
- Despite not holding Bitcoin in its treasury, Robinhood’s stock is closely correlated with the cryptocurrency’s performance.
- Robinhood intends to maintain a conservative approach to digital assets but plans to strengthen its market presence with the acquisition of Bitstamp.
Vlad Tenev, CEO of Robinhood, recently stated that the possibility of the trading platform holding Bitcoin as part of its internal reserves has been discussed several times within the company. However, he made it clear that Robinhood currently has no plans to do so. The idea of owning Bitcoin occasionally arises due to the company’s growing interest in cryptocurrencies, but it seems the company remains focused on offering services for buying and selling digital assets to its customers.
“We wouldn’t rule it out. We haven’t done it thus far. We’re not in the business of being investment managers”,
Tenev added.
Robinhood’s Stock Is Highly Correlated with Bitcoin
Although Robinhood has not followed the example of large companies like MicroStrategy or Tesla, which have purchased Bitcoin to hold on their balance sheets, Tenev highlighted that Robinhood’s stock is already highly correlated with Bitcoin even without holding the cryptocurrency in its treasury. This is due to the growing connection between the cryptocurrency market and stocks of trading platforms like Robinhood. In fact, the company’s stock has increased by 202% this year, while Bitcoin has risen by 110%.
Despite not holding Bitcoin, Robinhood’s stock movements are influenced by the trends of the cryptocurrency market, reflecting the increasing intersection of traditional trading platforms and digital assets. However, Tenev also noted that acquiring Bitcoin could complicate the company’s image among investors. It could be perceived as a crypto platform rather than a traditional trading service, which might not align with the company’s broader goals.
Robinhood continues to adopt a cautious stance toward digital assets. However, with its upcoming acquisition of Bitstamp, the company aims to strengthen its position in the crypto market starting in 2025. This move could potentially offer Robinhood greater exposure to the crypto sector without the direct responsibility of holding Bitcoin itself.
