Mizuho Securities: "No Need to Worry About Robinhood's Decline in Cryptocurrency Trading Volume"

JH Kim

Summary

Mizuho Securities assessed that there is no need to worry about Robinhood's cryptocurrency trading volume decline.
They reported that Robinhood has ample potential for fee increases and that transaction fees are rising with Bitcoin price increases.
However, the target price was adjusted down from $80 to $65, but the investment opinion was maintained as outperform.

Robinhood's cryptocurrency trading volume in the first quarter recorded $46 billion, down from the previous quarter's $70 billion, but global securities firm Mizuho Securities assessed that there is "no need to worry." According to cryptocurrency-focused media The Block on the 2nd (local time), Mizuho Securities stated in a report, "Robinhood's monthly trading volume in April exceeded historical levels," and added, "Even when Bitcoin (BTC) prices were rising in the past, the trading volume per Robinhood account did not stagnate." Furthermore, "Bitcoin prices rose by 10% in April," and "as Bitcoin prices rise, take rates (transaction fees) are increasing, and interest continues. This trend is expected to continue," they explained. Additionally, "Coinbase's retail fees are almost three times higher than Robinhood's. Robinhood has ample potential to raise fees," they added. However, Mizuho lowered the target price for HOOD from $80 to $65. The investment opinion was maintained as outperform (a buy or strong buy recommendation).