Robinhood CEO says ‘NO’ to Bitcoin as strategic asset, Details

• Robinhood has decided not to hold Bitcoin as an investment.
• The company’s cryptocurrency division reports a 165% revenue surge despite Bitcoin market volatility.

As global corporations increasingly embrace Bitcoin [BTC] as a strategic asset, some notable players remain hesitant. One of them is Robinhood—an American financial services company. 

Robinhood CEO says no to Bitcoin

During an interview with Anthony Pompliano, Robinhood CEO Vladimir Tenev, confirmed that the trading platform has no plans to hold BTC as an investment.

This cautious stance contrasts sharply with the growing trend of institutional adoption, raising questions about Robinhood’s long-term vision in the evolving cryptocurrency landscape.

Tenev acknowledged that the idea of holding BTC occasionally surfaces within the company, reflecting its growing involvement in the cryptocurrency space.

However, beyond maintaining minimal reserves to facilitate client trading activities, Tenev clarified,

“We wouldn’t rule it out. We haven’t done it thus far. Not in the business of being an investment manager.”

This indicates that while BTC isn’t entirely off the table, certain considerations influence Robinhood’s approach,

“We have to do the work of accounting for it, and it’s essentially on the balance sheet anyway, so there’s a real reason for it.” 

Thus, while firms like MicroStrategy and Metaplanet are time and again leveling up their Bitcoin game, Robinhood seems to have taken a step back but not completely.

This may be due volatile nature of cryptocurrency or just a unique growth strategy that the company might be adopting just like Microsoft.

Thus, calculating the risk which comes along with the digital assets, Robinhood might have gone the other way around.

Impact on the stock price

Meanwhile, on the price front, things were looking a little grim for the king coin. At press time, Bitcoin was trading at $94,038.28, marking a 1.92% decline over the past 24 hours.

On the other hand, Robinhood’s shares saw a 2.17% dip, closing at $37.5o, at the time of writing.

Despite this, the stock maintains a consensus price target of $38.19, with projections ranging from a bullish $55 by Morgan Stanley to a more conservative $11 by Barclays.