According to Mars Finance, Robinhood is strengthening its crypto team, launching crypto trading services in the European Union, and acquiring cryptocurrency exchange Bitstamp for $200 million. Bernstein analysts wrote in a report on Wednesday that these moves will drive Robinhood's operating income to approximately $900 million in 2024 and a market value of $19 billion to $23 billion by 2025.
Analysts estimate that Robinhood could reach $3.4 billion in revenue by 2025. The company has seen favorable factors, including demographic trends. About 60% of Robinhood’s assets come from customers under 43. In 2010, millennials generated about 1% of U.S. household wealth.
That number has risen to about 10% as Robinhood has stepped up its efforts to offer cryptocurrencies, stocks, derivatives and savings products to younger audiences. In the second quarter, cryptocurrencies’ share of Robinhood’s trading revenue jumped to $81 million, up 161% from the same period last year.
