While many large companies are incorporating Bitcoin [BTC] into their strategic plans, Robinhood, an American financial services firm, is taking a more cautious approach.
Robinhood CEO’s Stance on Bitcoin
In a recent interview with Anthony Pompliano, Robinhood’s CEO, Vladimir Tenev, made it clear that the platform does not intend to invest in BTC.
This decision stands out amidst the growing trend of institutional adoption, leaving speculations about Robinhood’s future in the ever-changing crypto market.
Tenev did mention that the idea of holding Bitcoin has been discussed internally at Robinhood, reflecting the company’s increasing involvement in the cryptocurrency sphere.
But Tenev emphasized that apart from keeping minimal reserves for client trading, Robinhood is not looking to become an investment manager.
“We might consider it at some point, but it’s not something we’ve pursued. That’s not our core business model.”
This suggests that while Bitcoin is not entirely ruled out, Robinhood has specific factors influencing its decision-making process.
“We have to carefully evaluate it, especially since it impacts our balance sheet. It requires thorough consideration.”
While companies like MicroStrategy and Metaplanet are aggressively increasing their Bitcoin holdings, Robinhood seems to be taking a more cautious approach, possibly due to the cryptocurrency’s volatility or as part of a unique growth strategy akin to Microsoft.
Therefore, Robinhood may be considering the risks associated with digital assets before making significant moves.
Effects on Stock Prices
Meanwhile, the price of Bitcoin has experienced a slight decline, with the current trading value at $94,038.28, marking a 1.92% decrease in the last 24 hours.
On the other hand, Robinhood’s shares have also dipped by 2.17%, closing at $37.50 at the time of this writing.
Despite this, analysts maintain a consensus price target for Robinhood at $38.19, with predictions ranging from an optimistic $55 by Morgan Stanley to a more conservative $11 by Barclays.