Robinhood's Bitcoin Stash Surpasses $3 Billion, Making It 3rd

Robinhood holds over $3.2 billion worth of bitcoin, according to Arkham Intelligence data cited by CoinDesk, making the popular trading app the third-largest holder of the crypto in the world.

Robinhood sits just behind Binance and Bitfinex, which have $6.4 billion and $4.3 billion stored on single wallets, respectively, according to the report.

Robinhood did not immediately respond to Insider's request for comment.

Over a three-month period, per CoinDesk, Robinhood transferred around 118,000 bitcoins to the primary wallet from other smaller wallets.

Earlier in August, the company reported downbeat second-quarter earnings, which showed that average monthly active users declined by about one million over the three-month stretch. Still, the platform had its first profitable quarter ever, and its retirement offerings continued to gain traction.

Transaction-based revenues, notably, declined 7% on a quarterly basis to $193 million, with cryptocurrencies, options, and equities seeing declines of 18%, 5%, and 7%, respectively.

Bitcoin got a boost on Tuesday from news that a judge sided with asset manager Grayscale in its suit against the Securities and Exchange Commission over converting its bitcoin trust into an ETF. The cryptocurrency popped 5% immediately after the news as traders upped bets that the ruling could also pave the way for the SEC to approve numerous applications for spot bitcoin ETFs, which experts say would be a boon for the token's price.

Some strategists see bitcoin soaring six-figures over the next year thanks to the April 2024 halving process, which will cut crypto miners' reward in half to create a scarcity effect.

"Taking a conservative view, if bitcoin stays around $30K until the halving, even a 12-month post-halving increase of 250% — which, again, is conservative relative to previous halvings — would price bitcoin at $105K," Joe Kelly, the CEO of financial firm Unchained, wrote in a recent note.

CoinShares data shared with Insider on Tuesday showed that last week saw the largest outflows from digital assets since March, with bitcoin seeing the biggest outflows totalling $149 million.

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