Wall Street’s SoFi Obsession: The Crypto Connection They Can’t Ignore
Wall Street's latest infatuation isn't another fintech flash in the pan—it's betting big on the digital asset revolution.
SoFi's strategic embrace of cryptocurrency services positions it lightyears ahead of traditional finance dinosaurs still debating whether Bitcoin is 'real money.' While legacy banks pile into compliance meetings, SoFi captures the next generation of investors who'd rather YOLO into crypto than settle for 0.01% savings accounts.
The platform's integrated approach—trading, lending, and now crypto—creates a sticky ecosystem that traditional brokers can't replicate. They're not just selling investment products; they're monetizing the entire decentralized finance movement.
Wall Street loves nothing more than a revenue stream it doesn't understand but can't afford to miss. SoFi's crypto play isn't just smart business—it's a hedge against becoming irrelevant in the finance world's inevitable digital future.
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No signs of slowing down
SoFi continues to grow at a blistering pace. In fact, the gains accelerated in the second quarter (ended June 30). This massive expansion is probably why the market keeps bidding up the company's shares.
Revenue surged 43% year over year during the second quarter. That was a much faster pace than the 20% increase registered in Q1. And after adding 846,000 new customers in the last three months, a quarterly record, SoFi now has more than 11.7 million people on its platform.
The business is scaling quickly. And there are no signs of slowing down. Revenue is expected to grow by 30% in 2025, according to the management team. That figure could get a boost if interest rates come down, which could drive demand from borrowers for loans.
Buying at record highs
After their monster performance, shares trade close to their peak. Investors might be discouraged, thinking that there's no longer an opportunity here. Maybe it's best to wait for a significant pullback.
However, SoFi's incredible growth trajectory means that there is still upside for long-term investors. If valuation is a concern, though, then consider a dollar-cost-average approach to slowly build up a position in the stock.
