On Wednesday, Robinhood released its January 2023 performance metrics. According to the performance metrics report, Assets Under Custody grew by a remarkable 20% to $74.7 billion, and notional trading volumes increased over all areas of operations.
In January 2023, equity transactions rose to a staggering $46 billion (a 19% rise from the previous month), while options contracts also experienced an increase of 10%. However, the most remarkable result came from Bitcoin trading volumes. After being affected by FTX’s Bankruptcy in November 2022, it suddenly increased by 95%, resulting in a total volume of $3.7 billion in January 2023.
Robinhood’s crypto revenues witnessed a dramatic shrink in 2022
Robinhood’s Crypto revenues took a devastating plunge in 2022, and total trading activity decreased. The first quarter of the year saw a drop of 43% in net earnings, with Crypto trading declining by nearly 40%. Subsequent quarters had similarly dismal results —12% for Q3 and 24% for Q4.
Moreover, the New York State Department of Financial Services (NYDFS) imposed a hefty $30 million penalty on Robinhood in August for violating money laundering and cybersecurity regulations.
The platform also fell in line with other cryptocurrency firms that had to let go of a portion of their workforce due to the market dip and unfavorable macroeconomic conditions. By April, it reduced 9% from its staffing headcount and 23% afterward.
As CEO Vlad Tenev explained, the principal explanation for layoffs was escalating inflation in the United States. Despite this difficult decision, he assured employees they would still receive regular pay and incentives (including shares). The organization is also committed to aiding these individuals during the transition by offering aid in job-seeking endeavors, financial assistance, and dental and eye coverage premiums.
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