Robinhood's cryptocurrency revenue plummeted by 47% in Q1 2026, while Galaxy Digital faced a $216 million loss due to declining digital asset prices.
Robinhood reported a substantial 47% decrease in cryptocurrency revenue for the first quarter of 2026, amounting to $134 million. The trading volume for cryptocurrencies nearly halved, reaching $24 billion, a 48% decline from the same quarter last year.
This trend of diminishing revenue has persisted since late 2025, with a 38% drop noted in February for the previous quarter's earnings.
Despite the slump in crypto transactions, Robinhood's overall revenue from its operations increased by 7% to $623 million, primarily driven by a remarkable 320% rise in event contracts revenue. Options and stock trading also saw growth of 8% and 46%, respectively.
CFO Shiv Verma highlighted that customers are engaging with new offerings such as prediction markets and index options, which are contributing to the company's revenue growth. Robinhood's net profit for the quarter stood at $346 million, reflecting a 3% increase compared to the prior year.
Galaxy Digital Reports Loss Amid Market Decline
In a contrasting report, cryptocurrency firm Galaxy Digital disclosed a net loss of $216 million for the first quarter of 2026, primarily due to falling digital asset prices affecting its balance sheet.
CEO Mike Novogratz characterized this period as a "transitional year" for the crypto industry, indicating a shift from speculative trading to broader technological integration across various sectors. Despite a 21% drop in overall cryptocurrency market capitalization last quarter, Galaxy's trading volumes remained stable, suggesting a potential decoupling from asset prices.
Key metrics from Galaxy include GLXY shares trading at approximately $25.3, and a gross profit of $49 million from digital assets, down from $51 million the previous quarter. The company also inaugurated its first production facility at the Helios data center in Texas, in partnership with CoreWeave, which is expected to significantly mitigate market volatility risks.
Galaxy anticipates that data center revenues will start growing in the second quarter, with plans to focus on institutional services such as custodial solutions and tokenization. Novogratz emphasized the need for a "complete overhaul" of financial markets through blockchain technology, while also noting concerns about the centralization of Bitcoin mining in contrast to the decentralized growth in the AI sector.
