Robinhood Markets Inc
Robinhood Falls With Bitcoin
Crypto-linked stocks, including Robinhood, are falling as Bitcoin drops. Rising yields, the Middle East conflict and a stronger dollar, which surged to an 18-month high Tuesday, are cooling risk appetite. Robinhood also bought $25 million of Bitcoin (CRYPTO:BTC) for its corporate balance sheet, joining a growing group of public companies that hold the token in their treasuries.
The 10-year Treasury yield is hovering between 5.30% and 5.34%, while the 10-year real yield has reached 2.91%. Higher risk-free rates squeeze consumers, governments and lower-quality companies. They also make bonds more competitive with stocks, which tends to weigh on richly valued names.
President Donald Trump's remarks about the danger Iran poses to U.S. cities drew bipartisan backlash. Separately, Reuters reported that Trump told a Monday rally in Grand Island, Nebraska, that higher fuel, fertilizer and other costs tied to the Iran conflict are a "small price to pay." The White House defended Trump's comments Tuesday, with Communications Director Steven Cheung saying Iran now lacks nuclear capability, a navy, an air force and financial resources.
Why Robinhood Bought Bitcoin
SVP Johann Kerbrat told The Block's Starting Block Wednesday that the buy shows Robinhood's dedication to crypto, not a major strategy shift. "We care deeply about bitcoin and the ecosystem around it," Kerbrat said, adding that the move aligns Robinhood with the crypto community. Kerbrat said the buy, small against Robinhood's roughly $100 billion market cap, will not meaningfully shift its trajectory.
Robinhood plans to give eligible U.S. users perpetual futures within months, covering Bitcoin, Ethereum, Solana, XRP, Dogecoin, Cardano, Chainlink and Hyperliquid. "America's first true perps," CEO Vlad Tenev said. The contracts never expire, and gains and losses settle every 15 minutes.
Analysts Back Robinhood
Despite the move lower Wednesday, Barclays analyst Benjamin Budish maintained an Overweight rating on Robinhood, raising the price target to $132 from $105 Wednesday. BofA also maintained a Buy rating on Monday and lifted its price target from $140 to $156. Robinhood stock carries a consensus Buy rating with an average price forecast of $137.10.
HOOD Shares Are Slipping
HOOD Price Action: Robinhood shares were down 2.76% at $108.91 at the time of publication on Wednesday, according to Benzinga Pro.
