Robinhood CEO Vladimir Tenev Says the Company Has No Immediate Plans to Invest in Bitcoin

Robinhood CEO Vladimir Tenev has announced that while the firm is increasing its focus on the crypto sector, it has no immediate plans to invest in Bitcoin.

Robinhood Markets Inc (NASDAQ:HOOD) is ramping up its focus on the crypto sector but has no immediate plans to invest in Bitcoin, according to CEO Vladimir Tenev.

In a recent interview with Anthony Pompliano, Tenev said that while the idea of investing in Bitcoin has come up, the company is primarily focused on facilitating trading, rather than holding Bitcoin as an investment.

"We wouldn't rule it out, but we haven't done it thus far," Tenev said. "We're not in the business of being an investment manager."

Tenev noted that Robinhood's stock price already closely tracks Bitcoin's performance, which may eliminate the need for the company to hold the cryptocurrency in its reserves.

Robinhood's stock has soared 202% this year, significantly outpacing Bitcoin's 110% year-to-date gain.

Crypto-related revenues are expected to grow by 20% at Robinhood by the end of 2025, with cryptocurrencies having the potential to contribute 38% to the platform's total revenues.

According to analysts at Bernstein, this growth is attributed to increasing user interest and favorable market conditions, which were particularly evident during President-elect Donald Trump's presidency.

Tenev added that including Bitcoin on the company's balance sheet could create confusion among investors, potentially leading to Robinhood being viewed as a "quasi-Bitcoin-holding play."

While Robinhood is taking a cautious approach to crypto investments, the company is actively expanding its cryptocurrency services.

In a bid to further cement its presence in the crypto space, it aims to complete its acquisition of crypto exchange Bitstamp by mid-2025.

Robinhood has generally maintained a conservative stance on crypto, offering fewer digital assets and trading options compared to its competitors. However, analysts suggest that this approach may shift as the company progresses with its Bitstamp acquisition and explores new opportunities in the evolving market.