Robinhood's $200M Crypto Power Play: A Bold Bet on Asia's Booming Market

GuruFocus.com
02-18

Robinhood (NASDAQ:HOOD) is making a big crypto move in Asia, setting up for a Singapore launch by late 2025. The company is rolling out digital asset trading through Bitstamp, the European exchange it snapped up for $200 million last year. Singapore, a rising crypto hub, offers a solid regulatory foundation that Robinhood plans to tap into as it pushes deeper into Asia. With competitors like Tiger Brokers and Futu Holdings expanding globally, Robinhood is racing to stake its claim in the region's booming financial market.

  • Warning! GuruFocus has detected 9 Warning Signs with HOOD.

This is part of a bigger play. Robinhood has been expanding aggressivelycrypto trading in Europe, US equity options for UK traders, and now, Singapore as its Asian HQ. The timing couldn't be better. Crypto markets are roaring back, fueled by shifting US regulations and growing institutional adoption. The company is already reaping the rewards, with Q4 2024 revenue more than doubling to $1 billion, smashing Wall Street estimates. And with plans to secure more brokerage licenses across Asia, Robinhood isn't slowing down.

But it's not all smooth sailing. Just last month, Robinhood shelled out $45 million in an SEC settlement over alleged securities violations. Still, that's not stopping its expansion plans. With its Singapore crypto launch locked in for late 2025, Robinhood is playing the long gamebetting that Asia's appetite for digital assets will keep growing, and positioning itself at the center of the action.

This article first appeared on GuruFocus.

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