Bitcoin Strategy Reinforces Commitment, Robinhood Shines Amid Gold Investments
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Highlights
- Strategy aims high with its 42-42 Capital Plan, targeting $42 billion in equity and fixed income, despite reporting a fifth consecutive quarterly loss.
- Cboe heralds record earnings, with a 21% EPS surge and expanding crypto ecosystem, including fresh Bitcoin index options and futures products.
- Robinhood experiences a slip in crypto transaction revenue, but its premium Gold service continues to shine.
Welcome to the SCENE
Public Keys is your weekly roundup from Decrypt that examines the key publicly traded crypto companies. This week, we’re diving into Strategy’s full-on Bitcoin play, Cboe’s "really nice" crypto ecosystem, and Robinhood’s crypto ebbs and flows.
Strategy's Double Down
Strategy, the Nasdaq-listed Bitcoin treasury and software company (MSTR), unveiled its 42-42 Capital Plan during its earnings call. Originally pledging to raise $21 billion for Bitcoin, Strategy now plans to amass an impressive $42 billion in equity and fixed income by 2027. Despite this ambitious move, the company posted a decline of $16.49 per common share.
Despite doubling down on its bullish Bitcoin stance and increasing its 2025 Bitcoin yield projection from 15% to 25%, Strategy has suffered five straight quarters of losses. The decrease is partly due to transitioning from an on-premises to a subscription model with software customers.
"In Q1, total software revenues were approximately $111 million, down 3.6% year-over-year," commented Andrew Kang, the company’s chief financial officer.
Cboe's "Nice" Crypto Ecosystem
Cboe, one of the world's largest exchange operators, reported record-high earnings per share and revenue on Friday. They also highlighted their growing crypto ecosystem, where customers can engage in various crypto-related activities.
Cboe attributed its success to the uncertainty surrounding trade wars, which led to increased EPS by 21% to $2.37 and revenue by 16% to $565.2 million. The surge was particularly noticeable in index option volume, which set a record in Q4 2024 during the U.S. election.
Cboe's new Bitcoin products, like index options and futures, are also experiencing encouraging growth, according to global president, David Howsen. One such product is CBO FTSE Bitcoin Index Futures, launched just last week, which allows investors to hedge existing Bitcoin exposures.
Robinhood's Rollercoaster Ride
Trading platform Robinhood, listed on Nasdaq under the HOOD ticker, also reported Q1 earnings this week. Like Cboe, Robinhood posted big numbers, with a 50% year-over-year increase in revenue. Crypto transaction revenue climbed 100%, reaching $252 million compared to the same period last year. However, this crypto transaction revenue has fallen compared to the previous quarter, when it was $358 million.
CEO Vlad Tenev anticipates this decline, stating that the company is working to diversify beyond crypto trading. While Tenev didn't specify the changes, he pointed out efforts to increase Gold subscribers, which peaked at 3.2 million in the last year.
In Q1, Robinhood attracted $18 billion worth of net deposits, a large portion of which was fueled by its premium Gold offering, launched on March 27. The Gold package boasts tailored, expert-managed portfolios, private jet travel, and same-day cash delivery.
Strategic Notes:
- Strategy now holds 553,555 BTC, acquired at a total cost of $37.90 billion, with a 13.7% BTC yield and a new target of $15 billion in BTC dollar gains[1].
- Strategy intends to raise an additional $21 billion through an at-the-market common stock equity offering[1].
Upcoming Events:
- Coinbase is set to report Q1 2025 earnings on May 8, with expectations of $2.12 earnings per share and revenue growth driven by higher trading volumes and crypto prices[5].
Sources:1. Strategy (MicroStrategy) Reports Q1 2025 Financial Results, Investor Presentation Available on MicroStrategy's Investor Relations Website [Accessed: April 30, 2025]2. Cboe Global Markets Reports First Quarter 2025 Results Before Market Open [Accessed: April 30, 2025]3. Robinhood Q1 2025 Earnings Report [Accessed: April 30, 2025]4. Coinbase to Report Q1 2025 Earnings on May 8th, 2025 [Accessed: April 30, 2025]5. Coinbase Q1 2025 Earnings Preview: Release Date, Key Expectations [Accessed: April 30, 2025]
- Strategy, a Nasdaq-listed Bitcoin treasury and software company, aims to raise an additional $21 billion through an at-the-market common stock equity offering, as part of its 42-42 Capital Plan.
- In an ambitious move, Strategy plans to amass an impressive $42 billion in equity and fixed income by 2027, aiming to increase its Bitcoin holdings with the new funding.
- Despite posting a decline of $16.49 per common share, Strategy remains bullish on Bitcoin, boosting its 2025 Bitcoin yield projection from 15% to 25%.
- Robinhood, a trading platform also listed on Nasdaq, saw a fall in crypto transaction revenue, which was $358 million in the previous quarter and $252 million in the current one.
- Robinhood is attempting to diversify beyond crypto trading, with plans to increase Gold subscribers, which peaked at 3.2 million in the last year.
- Cboe, one of the world's largest exchange operators, attributed its success to the growing crypto ecosystem, which includes Bitcoin index options and futures products like CBO FTSE Bitcoin Index Futures.
- Cboe's new Bitcoin products are experiencing encouraging growth, and the company reported record-high earnings per share and revenue, with a 21% EPS surge and a 16% increase in revenue.
- The crypto ecosystem is expanding, with companies like Strategy, Robinhood, and Cboe integrating crypto-related activities, indicating a shift towards crypto staking, trading, and investments, playing a significant role in the crypto economy.
