Robinhood crypto revenue drops 47%, stocks fall 14%

Shares of cryptocurrency-linked companies suffered sharp declines on Wednesday, driven by U.S.–Iran geopolitical tensions and Robinhood’s disappointing earnings report. The popular digital investment platform revealed a nearly 47% plunge in crypto revenue for the first quarter, causing its stock price to drop almost 14%. Known for attracting younger, tech-savvy users, Robinhood had become a major player in crypto trading in recent years.

Declines at crypto-focused exchanges and miners

Robinhood’s weak financial results further fueled uncertainty across the sector. U.S.-based crypto exchange Coinbase and institution-focused Bullish each saw their shares lose close to 8% in value. Gemini’s stock also dropped 6%, as the Winklevoss twins’ exchange remained in the spotlight due to ongoing investigations and regulatory pressures.

Shares of crypto mining companies Riot Platforms and MARA slid between 6% and 7%. MicroStrategy, the publicly traded company with the largest institutional Bitcoin holdings, saw its stock fall by 4%. These moves highlight how cryptocurrency-related equities tend to experience price swings even more extreme than the digital currencies they track.

Bitcoin price and geopolitical tensions

Bitcoin itself experienced milder volatility, slipping below $76,000 for a modest 0.5% decline in the past 24 hours. According to CryptoAppsy data, this slight drop in Bitcoin was overshadowed by the heavier losses seen in crypto-related stocks.

Another factor fueling the sell-off was former U.S. president Donald Trump’s rejection of Iran’s offer to end a military naval blockade. The U.S. stance left the critical Strait of Hormuz closed to global energy trade. Media reports indicate Iran had proposed reopening the Strait and postponing nuclear talks, but Trump’s administration only considered lifting the blockade for a broader nuclear agreement.

During the first quarter, Robinhood’s crypto revenue fell 47%, while shares of Coinbase and Bullish dropped by 8%. Losses at mining firms like Riot Platforms and MARA approached 7%. Weak earnings and Middle East tensions together drove stronger selling pressure across the sector.

Market overview and expected developments

News of ongoing Middle East tensions pushed oil prices sharply higher. West Texas Intermediate crude jumped 6%, climbing above $100 per barrel. Concerns over possible energy supply disruptions had a direct impact on pricing.

In contrast to the steep falls in crypto-linked equities, broader stock markets saw less dramatic moves. The leading U.S. technology index, Nasdaq, declined by a measured 0.35%.

Two key developments are on investors’ watchlist as the session continues. The U.S. Federal Reserve’s interest rate decision is expected, with no rate change foreseen in what may be Chair Jerome Powell’s final meeting. Markets will be paying close attention to guidance on monetary policy during the subsequent press conference.

Additionally, after U.S. markets close, major tech giants including Alphabet, Amazon, Meta and Microsoft will release their latest earnings reports. Investors are especially focused on these companies’ spending in artificial intelligence, seen as a key indicator of growth in tech infrastructure.