Robinhood's Crypto Push Could Boost Revenue to $900 Million in 2024: Bernstein

According to Bernstein analysts, Robinhood's recent moves to bolster its crypto team, launch crypto trading services in the EU, and acquire Bitstamp for $200 million could propel its operating revenue to approximately $900 million in 2024. The analysts believe this, combined with other factors, could push Robinhood's market value to between $19 billion and $23 billion by 2025. They anticipate that Robinhood's revenue could reach $3.4 billion by 2025.

The report highlights several favorable factors for Robinhood, including its demographic reach. Approximately 60% of Robinhood's assets come from clients under 43 years old. Millennials, a key target demographic, are a growing force in the financial landscape. Their share of U.S. household wealth has climbed from around 1% in 2010 to approximately 10% today.

Robinhood's focus on providing younger generations with access to cryptocurrencies, stocks, derivatives, and savings products positions it to capitalize on this trend. The company's success in this area is evident in its second-quarter results, where crypto trading revenue surged to $81 million, representing a 161% increase year-over-year.