Robinhood’s Secret Billion-Dollar Bitcoin Wallet: What We Know So Far

A recent study by Arkham Intelligence, released around August 27, suggests that Robinhood may control a single Bitcoin address with a value exceeding $3 billion. The report indicates that this address contains 118,300 Bitcoins, worth roughly $3.07 billion, starting with “bc1ql.”

As of today, this address remains active. Although recent transactions are minor, its balance has seen substantial growth since mid-May, when it contained just about $5,400 worth of Bitcoin. By May 25, the balance escalated to nearly $1.4 billion, and by June 18, it reached the $3 billion mark.

Jump Trading, a trading firm based in Chicago and known to provide the backend for Robinhood’s crypto trading functionalities, is the custodian for these funds.

Robinhood has neither confirmed nor denied ownership of this address and has not made any public comments about it. The company didn’t respond to an inquiry from CryptoSlate before their publication deadline.

According to Bitinfocharts data, this particular Bitcoin address is the third-largest, trailing behind two other crypto exchanges. The biggest address, belonging to Binance, holds 248,597 BTC (approximately $6.5 billion), while Bitfinex’s address holds 178,010 BTC (around $4.6 billion). However, these companies likely have even larger holdings, considering they operate multiple wallets.

Comparatively, Robinhood’s holdings are on par with significant corporate investments in Bitcoin. For instance, Microstrategy, a firm that has made Bitcoin a cornerstone of its investment strategy, had a Bitcoin portfolio worth $4.6 billion as of late June. However, these are likely different types of investments. While Microstrategy invests in Bitcoin for its own balance sheet, Robinhood’s holdings are possibly assets held on behalf of its users.

As for Robinhood’s overall crypto assets, the company reported having $11.5 billion in assets tied to safeguarding user cryptocurrencies as of June 30, 2023. It remains uncertain where the rest of these assets are stored and what portion of this $11.5 billion consists of cryptocurrencies other than Bitcoin.