Robinhood Management Isn’t Going to Invest in Bitcoin. Why Doesn’t the Platform Need It?

This is what the table of the largest Bitcoin holders among public companies looks like. The leader among them traditionally remains MicroStrategy, which has accumulated 444,262 BTC to date. They invested 27.7 billion dollars, while this position is currently estimated at 42.7 billion. Accordingly, the unrealized profit on it is 15 billion – and this is taking into account the current market correction.

Overall, BTC purchases around the world continue. As noted by representatives of the analytical platform CryptoQuant, today Bitcoin ETF, governments and the company MicroStrategy account for 31 percent of all known positions of organizations in the first cryptocurrency. A year ago, the figure was 14 percent, so the trend is obvious.

Which companies invest in cryptocurrencies

Tenev shared his thoughts on the advisability of investing in bitcoins in an interview with blogger Anthony Pompliano. Here is one of his quotes on what is happening in the market.

We don’t rule it out. But we haven’t done it yet. We don’t do investment management.

The CEO also noted that while Robinhood hasn’t followed the example of players like MicroStrategy or Tesla, who hold BTC on their balance sheets, its platform’s stock price is “already highly correlated with Bitcoin,” meaning it’s moving along a similar trajectory. It’s worth noting that Robinhood (HOOD) stock has risen 202 percent this year, while BTC’s year-to-date return has been about 110 percent.

Tenev believes that if Robinhood starts storing Bitcoin for investment purposes, it could “complicate” the perception of the company by investors, since there would be a possible conflict of interest. That is, the platform will be interested in the growth of the crypto market, and therefore will make every effort to popularize digital assets among clients.

In November, analysts at brokerage firm Bernstein named Robinhood shares the best investment of the cycle following Donald Trump’s victory in the US presidential election, according to sources told The Block . They predicted that the giant’s cryptocurrency revenue would grow by 20 percent by the end of 2025, accounting for 38 percent of the platform’s total inflows.

Robinhood has so far taken a more conservative stance when it comes to offerings for customers looking to buy and sell coins. The company offers significantly fewer investment options in digital assets and has listed fewer tokens than competitors Coinbase and Kraken.

This is expected to change during the Trump presidency, as the SEC’s undue pressure on the niche will subside, and the US Commodity Futures Trading Commission (CFTC) will take over regulation of the crypto sphere. The latter regulator is known for its positive attitude towards coins and the desire to classify them as a commodity rather than unregistered securities, which the SEC and its current chairman Gary Gensler have constantly insisted on.

Meanwhile, the largest corporate holder of bitcoin, MicroStrategy, has proposed increasing the number of its Class A common shares and preferred shares to better implement its strategy of continually acquiring bitcoin.

According to the company’s Form 14A filing with the U.S. Securities and Exchange Commission (SEC), the company is proposing to increase the number of shares of Class A common stock from 330 million to 10.33 billion and the number of shares of preferred stock from 5 million to 1.005 billion.

MicroStrategy said the proposed share increase would be part of a plan to raise $42 billion in capital. Of that, $21 billion would be raised through equity issuance and another $21 billion would be raised through fixed-income instruments, including bonds, convertible notes, and preferred stock. The “21/21” plan is intended to fund the company’s future Bitcoin purchases.

The filing also outlined other proposals from the company, including a new stock-based incentive plan that will automatically grant shares to new board members. In an 8-K filing last Friday, MicroStrategy expanded its board of directors from six to nine members, adding Brian Brooks, Jane Dietz, and Gregg Winiarski. Brooks served as Binance’s CEO for three months in 2021, and Dietz has served on Galaxy Digital’s board since 2022.

The exact date of the special meeting of shareholders to vote on these proposals has not yet been announced, but it is planned for 2025.