Robinhood chief financial officer Jason Warnick told The Wall Street Journal’s virtual CFO Network Summit that there are no compelling strategic reasons for the company to invest a large amount of its capital in cryptocurrency.
Warnick joins the ranks of other CFOs, such as Twitter CFO Ned Segal, who have expressed qualms about adding cryptocurrencies into their companies’ financial statements. While some are concerned about the continuous volatility of the assets, others are unable to incorporate them into their company’s investment strategy.
Companies such as Tesla, Block Inc., and MicroStrategy, on the other hand, have undertaken high-profile Bitcoin acquisitions, investing hundreds of millions, if not billions, of dollars in cryptocurrencies.
Another factor affecting Robinhood’s choice to avoid cryptocurrency is its regulatory status. According to Warnick, the firm seeks assistance from regulators on how to treat crypto assets.
“We’re a highly regulated company in a highly regulated industry,” Warnick continued, “and we believe it’s vital that authorities offer us with a little more clarity.” As a result, Robinhood has decided against adding any new cryptocurrencies to its existing cryptocurrency offerings, which include Bitcoin, Dogecoin, and Litecoin.
“We are aware that our customers and others would like to see us offer more currencies,” Warnick remarked.
Customers, for example, have been screaming for the addition of Shiba Inu to the site since at least October of last year. Finally, because crypto trading is no longer a popular function among consumers, the corporation is considering its halt.
In the most recent quarter, Robinhood earned $51 million on cryptocurrency deals, down from $233 million the prior quarter.