Robinhood buys into Crypto.com and OG.com as prediction markets revenue hits $156 million
Prediction markets are now Robinhood's fastest-growing business line, and the trading app is buying equity in the exchange that powers it. The company announced Tuesday it will take minority stakes in Crypto.com (CRO)…
Key takeaways
- Robinhood announced Tuesday it will take minority equity stakes in Crypto.com and its spun-off CFTC-regulated prediction markets exchange OG.com, which begins clearing and settling Robinhood's event contract volume September 8.
- Robinhood's event contract revenue surged more than 10-fold year-over-year to $156 million in the second quarter, even as its crypto trading revenue fell 38% over the same period.
- The stakes are priced in line with Citadel Securities' July investment that valued Crypto.com at $20 billion, while OG.com's standalone spin-off carries a $5 billion valuation.
- OG.com becomes Robinhood's third event-contract infrastructure supplier, after Kalshi and Rothera, the CFTC-licensed exchange Robinhood runs as a joint venture with Susquehanna International Group.
- Robinhood shares rose about 3.4% in premarket trading to roughly $126, while Crypto.com's CRO token jumped more than 6% to $0.06 with a session high of $0.065.
Prediction markets are now Robinhood's fastest-growing business line, and the trading app is buying equity in the exchange that powers it. The company announced Tuesday it will take minority stakes in Crypto.com (CRO) and OG.com, the CFTC-regulated prediction markets exchange Crypto.com spun off in February as a separately capitalized company, with OG.com set to clear and settle Robinhood's event contract volume starting September 8. Shares of Robinhood (HOOD) gained about 3.4% in premarket Tuesday to roughly $126.
The equity stakes in both Crypto.com and OG.com are priced in line with Citadel Securities' July investment, the first institutional funding Crypto.com has taken, which valued the exchange at $20 billion. OG.com's standalone spin-off carries a $5 billion valuation. Both companies call it OG.com's largest business-to-business partnership by trading volume.
Robinhood's own quarterly numbers explain the move. Event contract revenue surged more than 10-fold year-over-year to $156 million in the second quarter. Crypto trading revenue fell 38% over the same period. The company is now equity-linked to the exchange settling its fastest-growing revenue line.
OG.com becomes Robinhood's third infrastructure supplier for event contracts. The app built the business on Kalshi's contracts, then shifted volume to Rothera, a CFTC-licensed exchange Robinhood runs as a joint venture with Susquehanna International Group, stress-tested during this year's World Cup. Robinhood VP JB Mackenzie said the deal "gives [Robinhood] even more skin in the game" as event contract demand grows.
CRO jumped more than 6% to $0.06 Tuesday, with a session high of $0.065. The move came off a reset floor: the token hit a three-year low roughly a month earlier after Trump Media Group canceled a separate set of deals with Crypto.com. Crypto.com CEO Kris Marszalek described the tie-up as a "game changer" and said he wants OG.com to become "the most liquid venue globally for innovative derivative instruments." For Crypto.com, the OG.com spin-off also advances its regulatory positioning. The company won conditional approval for a U.S. national trust bank charter in February.
The phased rollout to eligible U.S. customers begins today. The next milestone both companies have flagged is equity-linked perpetual futures, pending regulatory clearance.