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Robinhood CEO Says ‘No’ to Bitcoin as Strategic Asset, Details
In a recent interview with Anthony Pompliano, Robinhood CEO Vladimir Tenev revealed that the company has no plans to hold Bitcoin (BTC) as an investment. This stance is in stark contrast to the growing trend of institutional adoption, leaving many wondering about Robinhood’s long-term vision in the evolving cryptocurrency landscape.
Tenev acknowledged that the idea of holding BTC occasionally surfaces within the company, reflecting its increasing involvement in the cryptocurrency space. However, he clarified that maintaining minimal reserves to facilitate client trading activities is as far as the company’s involvement with BTC will go. Tenev stated, “We wouldn’t rule it out. We haven’t done it thus far. Not in the business of being an investment manager.”
This decision may have been influenced by various factors, including the volatile nature of cryptocurrency markets and a unique growth strategy that the company might be adopting. As a result, calculating the risk associated with digital assets has led Robinhood to take a step back.
The CEO’s statement comes as a surprise, given the growing trend of firms like MicroStrategy and Metaplanet leveling up their Bitcoin game. While some companies are embracing BTC as a strategic asset, it appears that Robinhood is taking a different approach.
Interestingly, the stock market reacted negatively to this news, with Robinhood’s shares experiencing a 2.17% dip, closing at $37.5o at the time of writing. Meanwhile, Bitcoin’s price was trading at $94,038.28, marking a 1.92% decline over the past 24 hours.
Despite this negative sentiment, Robinhood’s stock maintains a consensus price target of $38.19, with predictions ranging from a bullish $55 by Morgan Stanley to a more conservative $11 by Barclays.
Source: ambcrypto.com
