Bitcoin traders' anniversary lesson after $20 billion crypto liquidation
A year ago, US-China tariffs sparked a $20 billion crypto liquidation cascade. Bitcoin now trades a third below its peak, underscoring leverage risks.
Robinhood has bought $25M in Bitcoin for its treasury, describing the purchase as a show of support for crypto.
Robinhood has put $25 million worth of Bitcoin (BTC) onto its corporate balance sheet. The trading platform described the move as a show of support for the cryptocurrency sector rather than a gamble on price gains.
Yet less than 12 months ago, the incoming finance chief at Robinhood publicly questioned whether it made sense to hold Bitcoin with company money.
Johann Kerbrat, who serves as senior vice president and general manager of crypto and international at Robinhood, revealed the deal on Wednesday. He made the announcement during a live-streamed interview on X.
In November 2025, Shiv Verma, who was about to become Robinhoodâs chief financial officer (CFO), considered the same idea. Verma pointed to broader alignment with the crypto community as a plus but also asked a more pointed question.
âIs it the best use of our capital? Thereâs a lot of different things youâre doing, you know, from new products, for growth, investing in engineering.â
Shiv Verma, Robinhood, November 2025 interview
Verma, who has since taken over as CFO, said the company would keep assessing the advantages and disadvantages.
Kerbrat acknowledged that the Bitcoin stash is modest. He added that it would barely affect the direction of a company valued close to $100 billion.
At Bitcoinâs current price of $85,582, the purchase amounts to around 292 BTC. Robinhood has not revealed the precise number of coins acquired.
The holding represents roughly 0.025% of Robinhoodâs market capitalisation.
For context, Strategy spent $28.7 million on 334 BTC from October 1 to 4, as disclosed in its filing. That transaction raised its overall stash to 848,000 BTC.
Robinhoodâs own crypto business has meanwhile lost some heat. Cryptocurrency revenue dropped 38% year-on-year to $100 million in the second quarter, based on the companyâs results.
Total revenue, however, grew 32% to a record $1.31 billion.
Robinhood (HOOD) shares ended Tuesday at $112, falling 1.85%. The stock continued to decline in Wednesdayâs pre-market trading, according to TipRanks.
The Bitcoin purchase is part of a wider push onto blockchain networks. Robinhood Chain, a layer-2 network built on Arbitrum technology, launched its public mainnet on July 1.
That network now holds $1.047 billion in total value locked (TVL), according to DefiLlama. TVL refers to the assets deposited in a networkâs applications.
The chain passed $1 billion roughly 80 days after its launch. Growth has since slowed, with TVL staying between $1 billion and $1.05 billion since late September.
Robinhood also plans to offer perpetual futures to eligible US customers, with leverage of up to 10x on BTC and ETH. The company unveiled those products last week alongside its in-app AI agents.
Unlike treasury firms that issue stock to keep accumulating coins, Robinhood is spending a relatively small sum to show allegiance. Its next quarterly filing should reveal exactly what it holds and whether more purchases have occurred.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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