Bitcoin Strategy Intensifies Investment Plans, Robinhood Shines with Gold Storage
crypton extreme
Weekly Digest: Top Crypto Players in Focus
Welcome to our weekly roundup, highlighting the key moves of the major publicly-traded cryptocurrency companies. This week features Strategy's full-on Bitcoin play amid five consecutive quarterly losses, Cboe's growing crypto ecosystem, and Robinhood's declining crypto transactions while Gold continues to shine.
Strategy: All Aboard the Bitcoin Train
Strategy, a Nasdaq-listed company with the ticker MSTR, rolled out its 42-42 Capital Plan during its earnings call, promising to gather an eye-popping $42 billion in equity and fixed income by 2027—double the initial $21 billion fundraising goal. CEO Phong Le remains steadfast in his support of Bitcoin, with the company's 2025 Bitcoin yield projection now rocketing from 15% to a blistering 25%. Unfortunately, the plan comes with a fifth straight quarterly loss of $16.49 per common share. These losses can partially be attributed to the company's shift from an on-premises to a subscription model with its software customers, leaving some customers scratching their heads.
Cboe: A Cryptocurrency Ecosystem That Keeps Growing
Cboe, one of the world's largest exchange operators, rang the earnings bell this week, boasting record-breaking earnings per share and revenue gains. The boost was driven largely by trade tensions and a record-setting Q4 2024 index option volume around the U.S. election. As icing on the cake, Cboe has been developing a "lovely" crypto ecosystem, with multiple Bitcoin index options and futures products added to its offerings, including the new CBO FTSE Bitcoin Index Futures.
Robinhood: Crypto Transactions See a Dip, Gold Shines Bright
Trading platform Robinhood, trading on Nasdaq under the HOOD ticker, reported its Q1 earnings this week, revealing strong revenue growth and a significant 100% jump in crypto transaction revenue compared to the previous year. However, crypto transaction revenue took a dive compared to the last quarter, amounting to $252 million. Despite this, Robinhood's premium Gold service continues to drive success, with an impressive 200,000 new Gold cardholders on board in just a few weeks and a total of 3.2 million subscribers in the past year alone.
Other Highlights
- Crossing Fingers for SEC Clarification: Crypto companies are pushing hard for the SEC to clarify that staking services do not fall under regulations, which would pave the way for U.S. spot Ethereum ETFs and level the playing field with their counterparts in other countries.
- Metaplanet Treasury Corp., It's a Go: Japanese Bitcoin treasury company Metaplanet is gearing up to set up its new entity in the U.S. with a goal of raising $250 million to boost its Bitcoin treasury strategy.
- Riot's Mixed Bag: Bitcoin miner Riot Platforms shared its Q1 earnings, displaying mixed results. While revenue exceeded expectations and climbed 13% from the previous quarter, Riot swung to a whopping $296.4 million loss.
Edited by Andrew Hayward
- Strategy, in its pursuit of Bitcoin, has doubled its fundraising goal to $42 billion by 2027, a move that includes a significant increase in Bitcoin yield projection from 15% to 25%. However, this ambitious plan has led to a fifth consecutive quarterly loss.
- Cboe, a global exchange operator, recently reported record-breaking earnings, driven by trade tensions and a record-setting index option volume, and is expanding its crypto ecosystem with multiple Bitcoin index options and futures products.
- Robinhood, the trading platform, has seen a 100% increase in crypto transaction revenue year-over-year, but a dip compared to the last quarter, amounting to $252 million. Despite this, the company's premium Gold service continues to thrive with new subscribers.
- Crypto companies are urging the SEC for clarification on staking services, hoping it would pave the way for U.S. spot Ethereum ETFs, making the crypto ecosystem more competitive with other countries.
- Metaplanet, a Japanese Bitcoin treasury company, plans to raise $250 million in the U.S. to bolster its Bitcoin treasury strategy.
- Bitcoin miner Riot Platforms, in its Q1 earnings, showed mixed results with revenue exceeding expectations and climbing 13% from the previous quarter, but a large loss on its balance sheet.
In these crypto-centric times, tech giants like Bitcoin miner Riot, trading platforms like Robinhood, exchange operators like Cboe, and other crypto players continue to make waves in the evolving crypto ecosystem.
