Robinhood Stock Jumps 5% as Bitcoin Rally and SEC Rule Change Align

Robinhood Markets Inc. (NASDAQ:HOOD) shares are trading higher Monday alongside Bitcoin, which climbed to around $85,000, its highest level since January.

Bitcoin’s Rally Lifts Crypto-Exposed Stocks

Bitcoin surged more than 5% over the past 24 hours, lifting crypto-linked equities broadly. Robinhood generates a meaningful share of its revenue from cryptocurrency trading — customers buying and selling Bitcoin and other digital assets directly through the platform — so higher crypto prices tend to coincide with increased trading activity and investor enthusiasm for the stock, even though the company’s Q2 crypto revenue actually declined 38% year-over-year to $100 million as growth in other segments took over.

Shares rose alongside gains in Strategy, Coinbase, MARA Holdings and other crypto-exposed names, according to CoinDesk. A wave of short-seller liquidations added further fuel to the move, with roughly $300 million of the approximately $313 million in crypto positions liquidated over the past hour belonging to short sellers, according to CoinGlass data.

A Regulatory Tailwind From the SEC

Robinhood’s gains are also tied to the SEC’s new “Innovation Exemption,” announced last week, which allows qualifying trading venues to offer tokenized versions of U.S. stocks without registering as traditional stock exchanges for five years. Robinhood has been pushing aggressively into tokenized assets, and investors are viewing the development as a potentially significant tailwind for that push.