Bitcoin Plans Reinforced: Public Keys Stick to Their Bitcoin Strategy; Robinhood Shines with Gold
In a nutshell
- Strategy, a Bitcoin-focused company, announced its 42-42 Capital Plan to accumulate $42 billion in equity and fixed income by 2027 despite five consecutive quarterly losses.
- Cboe reported record earnings, highlighting its expanding crypto ecosystem, including new Bitcoin index options and futures products.
- Robinhood observed 100% year-over-year growth in crypto transaction revenue but experienced a quarterly decline amidst efforts to diversify beyond crypto trading.
The Scene - A Decrypt Weekly Roundup
Welcome to this week's edition of Public Keys, your peek into the world of publicly traded crypto companies brought to you by Decrypt.
Strategy Gone Wild (On Bitcoin)
Strategy, the Nasdaq-listed Bitcoin treasury and software company with the MSTR ticker, revealed its ambitious 42-42 Capital Plan this week on its earnings call. The plan aims to amass $42 billion in equity and fixed income by the end of 2027, a substantial increase from its initial $21 billion pledge. Their confident Bitcoin bet may have been the reason behind CEO Phong Le's estimation of a 25% yield by 2025, an increase from the optimistic 15% forecast previously. Despite this bullish stance and impressive projections, Strategy shares took a hit with a $16.49 per common share loss for Q1 2024. This can be attributed to Strategy's pivot from an on-premises to subscription model for its software customers, with total software revenues dropping by 3.6% year-over-year. Despite this, analysts remain optimistic, with independent analyst Fred Krueger expressing his confidence in Strategy's prospects.
Cboe's Nice, Crypto Ecosystem
Cboe, the global exchange operator known for its май paying out boost, posted record-high earnings per share (EPS), up 21%, and revenue, up 16%, for Q1 2024. Cboe credits much of this success to the surge in index option volume. Encouragingly, they've also expanded their crypto offerings, launching Bitcoin index options (CBTX and MBTX) in December 2024 and CBO FTSE Bitcoin Index Futures (XBTF) in April 2024. The new futures contract, which mimics the price of Bitcoin, provides investors an additional tool for hedging Bitcoin exposures, including spot Bitcoin, Bitcoin ETFs, or other derivatives.
Robinhood Sails with the Tides
Robinhood, a Nasdaq-listed trading platform with the HOOD ticker, has seen substantial growth in crypto transaction revenue, up 100% year-over-year, and revenue overall, up 50%. However, these revenues dipped compared to the previous quarter, making CEO Vlad Tenev confident that efforts to diversify the business beyond crypto trading would help stabilize the company's bottom line. Robinhood reported 3.2 million Gold subscribers (an upgrade from its standard offering), and the continued growth of its premium Gold service, which includes perks like tailor-made investment portfolios managed by expert traders and same-day cash delivery.
The Future's Bright
With Cboe strengthening its crypto ecosystem and companies like Coinbase and Square (now Block) performing well, the crypto market requires clarity regarding staking and associated services, which the SEC recently promised to address. This promise could pave the way for U.S. spot Ethereum ETFs to catch up with their global counterparts. The Japanese Bitcoin treasury company, Metaplanet, has also announced its arrival in the U.S., with plans to raise $250 million for its Bitcoin treasury strategy. Finally, crypto miner Riot Platforms shared mixed results, with revenue increasing but a sharp decline in net profit.
Enrichment Data:- Cboe Futures Exchange launched Cboe FTSE Bitcoin Index futures (XBTF), a cash-settled contract based on the FTSE Bitcoin Reduced Value Index.- Cboe's efforts to build an ecosystem for Bitcoin exposure and risk management respond to growing demand for crypto-based derivatives.- Robinhood's revenue growth has been substantial, particularly in crypto transaction revenue, but it declined compared to the previous quarter, as the company works to diversify beyond crypto trading.
- Strategy, a Bitcoin-focused company, unveiled its 42-42 Capital Plan this week, aiming to accumulate $42 billion by 2027, while its shares took a hit due to consecutive quarterly losses.
- Cboe is expanding its crypto ecosystem with new Bitcoin index options and futures products, such as the recently launched CBO FTSE Bitcoin Index Futures (XBTF), providing investors a tool for hedging Bitcoin exposures.
- Despite a quarterly decline in crypto transaction revenue, Robinhood observed a 100% year-over-year growth and plans to diversify beyond crypto trading to stabilize its bottom line.
- As the crypto market requires clarity on staking and associated services, the SEC recently promised to address the issue, potentially paving the way for U.S. spot Ethereum ETFs to catch up with their global counterparts.
- With companies like Coinbase and Square (now Block) performing well, the Japanese Bitcoin treasury company, Metaplanet, has announced its arrival in the U.S., planning to raise $250 million for its Bitcoin treasury strategy.
- Crypto miner Riot Platforms shared mixed results, with revenue increasing but a sharp decline in net profit, highlighting the dynamic nature of the crypto market influenced by technology, such as crypto staking and crypto trading.
