Robinhood Eyes Bitcoin for Balance Sheet Boost as $HOOD Plummets 10% – A Bold Bet or Desperate Move?
Robinhood's rumored Bitcoin pivot sparks market chaos—just as its stock tanks double digits.
The Crypto Gamble
Leaks suggest the trading app might back its balance sheet with Bitcoin. Traders aren’t waiting for confirmation—$HOOD got dumped like a bad altcoin.
Wall Street’s Skepticism
Because nothing says 'financial stability' like volatile crypto reserves. Classic Robinhood—either genius or another meme-stock era misstep.
Robinhood pushes tokenized stocks while crypto-linked stocks tank
At the same earnings call, Robinhood CEO Vladimir Tenev said Robinhood has entered the early stages of a rollout to support tokenized stocks. He explained that the company is currently in “phase one,” with phase two expected to allow secondary trading on Bitstamp.
Eventually, the company wants these stock tokens to land on DeFi platforms, letting people trade tokenized shares the same way they trade other tokens on-chain. Vladimir said “where it really starts to get interesting is phase two and phase three,” but gave no hard dates for when that will happen.
Meanwhile, crypto’s October crypto downturn left many companies who already hold Bitcoin or ethereum sitting on unrealized losses. Firms like Metaplanet and Trump Media bought their BTC positions earlier in the year when prices were stronger.
Those holdings are now worth less than what was paid. The same thing is happening on the Ethereum side. Bitmine and Sharplink also bought during the April to July rally, and are now down since that momentum vanished.
Meanwhile, Robinhood’s own stock just dropped over 10% today. It wasn’t alone. The broader crypto sector got crushed.
Investors are reacting to a mix of U.S. job numbers, renewed trade tensions, and a government shutdown that’s now stretched into day 37, the longest in history.
Coinbase sank by more than 6%, Galaxy Digital dropped 4%, and mining firms weren’t spared either.
MARA Holdings fell 3.6%, CleanSpark and Riot Blockchain lost over 5% each. Stocks linked to bitcoin treasuries fell 6.5%, and Ethereum treasury names like BitMine Immersion and Sharplink Gaming dropped 7% and 6%, respectively.
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