The lowdown on recent crypto happenings in the public market
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Bitcoin Ambitions Reinforced: Public Keys Stick to Crypto Scheme; Robinhood Shines with Gold Assets
Decrypt's guide to the movers and shakers in the crypto world
This week's edition: Strategy's all-in Bitcoin play, even with five consecutive quarterly losses; Cboe's glowing report on its crypto ecosystem, boasting new Bitcoin products; and Robinhood's crypto transactions dipping while premium Gold service gains traction.
Get a load of Strategy, son!
Bitcoin and software company Strategy (Nasdaq: MSTR) revealed its 42-42 Capital Plan on a recent earnings call. This bold move aims to amass a whopping $42 billion in equity and fixed income by 2027. CEO Phong Le spilled the beans during the call.
It's no secret that Strategy has been a staunch Bitcoin supporter. Its pledge to raise $21 billion to acquire more Bitcoin has now grown tenfold. But at the expense of a fifth straight quarterly loss of $16.49 per common share. The decline may be attributed to Strategy's pivot from an on-premises to subscription model with its software customers.
"Total software revenues were approximately $111 million, down 3.6% year-over-year," according to Chief Financial Officer Andrew Kang on the call. The ongoing shift from on-prem to cloud may have impacted the revenue.
The company reported five consecutive quarters of losses since seeing a gain of $89.1 million in Q4 of 2023. Despite the losses, investors are showing bullish sentiment, with the stock climbing 3.35% to $394 as of close Friday.
Independent analyst Fred Krueger even claimed, "Strategy will have a stronger balance sheet than Apple within 18 months."
Cboe, baby, you're looking good!
Global exchange operator Cboe is celebrating record-high earnings per share (EPS) and revenue this week. The company posted a 21% EPS growth and a 16% revenue increase to $565.2 million according to its pre-market earnings report.
Cboe President David Howsen highlighted an expanding crypto ecosystem during the earnings call. The catalyst was increased uncertainty around trade wars, which bolstered index option volume in Q4 2024. So much so that records have been broken multiple times in April as trade tensions escalated.
Cboe also highlighted its new Bitcoin products such as the Bitcoin index options (tickers CBTX and MBTX) launched in December and the CBO FTSE Bitcoin Index Futures (XBTF) introduced just last week. The new futures contract is intended to provide investors another way to hedge existing Bitcoin exposures.
Robinhood, it's complicated
Trading platform Robinhood (Nasdaq: HOOD) also reported its Q1 earnings this week, describing a mixed bag. The company saw a 50% year-over-year revenue increase and a 100% surge in crypto transaction revenue to $252 million compared to the same period last year.
However, that crypto transaction revenue took a tumble compared to last quarter, when it was $358 million. CEO Vlad Tenev noted the decline but remained optimistic, stating it was expected as they work to diversify beyond crypto trading.
"We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes," Tenev said during the call. The company hasn't shared any details on how crypto offerings will change, though.
Robinhood's premium Gold service, on the other hand, appears to be flourishing. The company nearly doubled Gold subscribers to 3.2 million in the past year and added 200,000 new Gold cardholders in the past few weeks. The new perks include tailor-made, expert-managed portfolios, private jet travel, and same-day cash delivery, among others.
Other happenings
- Crypto companies are pushing for the SEC to clarify whether "crypto staking and associated services" fall under its regulatory umbrella. If there were clarity, it would boost U.S. spot Ethereum ETFs to match their counterparts in other regions.
- Japanese Bitcoin treasury company Metaplanet is making a move to the United States. The company plans to operate its new entity, Metaplanet Treasury Corp., with a goal to raise $250 million.
- Bitcoin miner Riot Platforms shared Q1 earnings on Thursday, reporting mixed results. The firm's revenue beat expectations but swung to a $296.4 million loss, or $0.90 per share.
That's all folks! Stay tuned for next week's SCENE. #Decrypt #Crypto #Blockchain #Bitcoin #Trading #Stockmarket
- Strategy, a Bitcoin and software company, aims to amass $42 billion in equity and fixed income by 2027, as revealed in their 42-42 Capital Plan.
- Despite its pledge to acquire more Bitcoin, Strategy has experienced five consecutive quarterly losses, with a decline in total software revenues.
- The ongoing shift from an on-premises to cloud model may have impacted Strategy's revenues, as reported by its Chief Financial Officer, Andrew Kang.
- Cboe, a global exchange operator, has celebrated record-high earnings per share and revenue, citing an expanding crypto ecosystem as a significant contributing factor.
- Cboe has launched new Bitcoin products such as the Bitcoin index options and the CBO FTSE Bitcoin Index Futures, offering investors another way to hedge existing Bitcoin exposures.
- Robinhood reported a 50% year-over-year revenue increase and a 100% surge in crypto transaction revenue, but the crypto transaction revenue declined compared to the last quarter.
- Crypto companies are advocating for the SEC to clarify whether crypto staking and associated services fall under its regulatory jurisdiction, which could potentially boost U.S. spot Ethereum ETFs.
- Japanese Bitcoin treasury company Metaplanet is planning to operate in the United States, with a goal to raise $250 million through its new entity, Metaplanet Treasury Corp.
