Robinhood Reports Loss of $175m in Q3 2022, Crypto Revenue Declines

<p> Robinhood, a major US commission-free stock trading and investing app, reported a net loss of $175 million during the third quarter of 2022. Although the company's transaction-based revenues increased slightly, the cryptocurrency sector generated a substantial decrease.</p><p class="MsoNormal">According to the popular no-fee trading app's quarterly report, total net revenues stood at $361 million, which is an increase of 14% compared to the previous quarter. <a href="https://www.financemagnates.com/tag/robinhood/" target="_blank">Robinhood </a>rose its transaction-based revenues within equities and options asset classes, while <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a> lost 12% to $51 million. </p><p class="MsoNormal">Overall, Robinhood reported a net loss of $175 million ($0.20 per share). While this value is certainly not optimistic, it is a significant improvement over the previous quarter when the company showed a net loss of $295 million ($0.34 per share).</p><p class="MsoNormal">"In the third quarter, we achieved our goal of reaching adjusted EBITDA profitability, a quarter earlier than planned. We delivered on top feature requests for customers including advanced charts, options in cash accounts, instant withdrawals and our self-custody, web3 wallet. In the next week, we are raising the yield on uninvested cash for Gold members – making it one of the best rates in the industry," Vlad Tenev, the CEO and Co-Founder of Robinhood Markets, said.</p><p class="MsoNormal">Volatile Market Cuts Robinhood User Base and Staff</p><p class="MsoNormal">In August 2022, Robinhood announced that it was <a href="https://www.financemagnates.com/cryptocurrency/robinhood-cuts-its-workforce-by-23-due-to-deterioration-of-the-macro-environment/">cutting its workforce by almost 25%</a> due to the continued decline in its user base. Earlier in the year, the company <a href="https://www.financemagnates.com/forex/brokers/robinhood-to-lay-off-9-of-staff-as-stock-hits-all-time-low/">slashed 9% of its staff</a> due to the same issues. </p><p class="MsoNormal">According to the newest release, a volatile market environment, risk aversion and long-term declines are the main reason for the continued slump in monthly active users (MAU). In the third quarter, the Robinhood user base contracted to 12.1 million from 14 million reported in the second quarter. MAUs last peaked back in Q2 2021, when they stood at 21.3 million.</p><p class="MsoNormal">Adding to the current problems with the cryptocurrency division, the New York State Department of Financial Services (NYDFS) has <a href="https://www.financemagnates.com/cryptocurrency/news/robinhood-crypto-to-pay-30-million-penalty-for-aml-and-consumer-protection-violations/">imposed</a> a $30 million penalty for consumer protection, <a href="https://www.financemagnates.com/terms/c/cybersecurity/" target="_blank" id="d5b7f88f-89b3-4477-a0d2-c6eae7833df9_1" class="terms__secondary-term">cybersecurity</a> and anti-money laundering violations.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Argo Blockchain Reports $8.7m Net Loss in Q1 2023 amid Revenue Growth and Cost Reductions

Argo Blockchain (LSE: ARB; NASDAQ: ARBK), a major cryptocurrency mining company, recently shared its unaudited financial results for Q1 2023. Although the report showed notable improvements in revenue, cash reserves, and cost reductions, the company could not achieve a positive net result.

Argo Blockchain Boosts Revenues in Q1 2023

Argo Blockchain ended the first quarter with a substantial balance of $14.2 million in cash and 85 Bitcoin or Bitcoin Equivalents (BTC) in its reserves. The company reported a revenue increase of 15% from Q4 2022, totaling $11.4 million. Despite a net loss of $8.7 million, Argo Blockchain demonstrated resilience by achieving an adjusted EBITDA of $1.6 million.

Throughout the quarter, Argo Blockchain displayed consistent mining performance, mining an average of 5.3 BTC per day, totaling 491 BTC. Mining margins for the quarter improved significantly to 49%, which is up from 35% in Q4 2022.

New RNS: Argo released its Q1 2023 earnings today:+Cash of $14m at the end of March+Q1 revenue of $11m (up 15% from Q4'22)+Mining margin of 49% (up from 35% in Q4'22)+Reduced opex by 70% from H2'22+BlockMiners to add 300 PH/sRNS: https://t.co/OjBHf7KGyq#ARB$ARBK#BTC

"The Argo team is moving ahead with a focus on financial discipline, operational excellence, and growth and strategic partnerships," Seif El-Bakly, the Interim Chief Executive Officer of Argo, said. "To support these initiatives, we recently strengthened our finance team and appointed Jim MacCallum, CPA, CFA, as Chief Financial Officer."

MacCallum, a Certified Public Accountant and Chartered Financial Analyst brings over 30 years of experience in finance and accounting roles.

Two months ago, the publicly-listed miner published its financials for 2022, ending the year with a revenue of £47.4 million ($58.6 million), which is a decrease of 36%. The company posted a net loss of £194.2 million ($240.2 million) for 2022, driven by the declining value of cryptocurrencies.

Argo Blockchain Cuts Costs

Additionally, Argo Blockchain achieved substantial cost reductions in Q1 2023. Operating costs and expenses dropped 70% compared to the average in the second half of 2022, and finance costs fell 63% in the same period.

When it comes to financial discipline, Argo Blockchain has adopted a more scrutinizing approach toward all operating expenses, implementing a stringent internal process targeted explicitly at minimizing non-mining costs. The result of this disciplined approach is a notable 70% reduction in expenses as compared to 2022. In addition to this, the company is actively considering different strategies to fortify its balance sheet.

During Q1, Argo successfully transitioned the Helios facility to Galaxy Digital, and the overall cost for power and hosting was lower than previously forecasted. The decision to sell the mining plant was revealed in December and saved the company from potential bankruptcy filling.

Looking ahead, Argo plans to install 'BlockMiner' machines at its Quebec facilities later this year. They are expected to increase the company's total hash rate to approximately 2.8 EH/s.

The previous year was particularly hard for the mining companies, as their revenues fell 37.5% to $9.55 billion. Overall, BTC miners made $6 billion less than in 2022.

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MicroStrategy’s Bitcoin conviction ‘strong’ as it returns to profit in Q1: CEO

Business intelligence platform MicroStrategy has reiterated its commitment to its Bitcoin (BTC) investment strategy after turning its first quarterly profit since 2020.  The Michael Saylor-founded firm went back into the green in the first quarter of 2023 with a profit of $94 million, which was largely attributed to a one-time income tax benefit of $453.2 [...]

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