{"id":144615,"date":"2023-06-23T05:24:22","date_gmt":"2023-06-23T05:24:22","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=144615"},"modified":"2023-06-23T11:01:24","modified_gmt":"2023-06-23T11:01:24","slug":"robinhood-acquires-x1-for-almost-95m","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/robinhood-acquires-x1-for-almost-95m\/","title":{"rendered":"Robinhood Acquires X1 for Almost $95M"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Robinhood has taken a new step toward the diversification of its business by <a href=\"https:\/\/newsroom.aboutrobinhood.com\/robinhood-signs-agreement-to-acquire-x1\/\" target=\"_blank\" rel=\"noopener\">acquiring<\/a><\/strong><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/newsroom.aboutrobinhood.com\/robinhood-signs-agreement-to-acquire-x1\/\" target=\"_blank\" rel=\"noopener\"> X1<\/a> in a deal of approximately $95 million.<\/strong> The firm is responsible for the provision of income-based credit cards with a series of rewards. At the same time, users were also offered free trials and single-use credit cards.<\/span><\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Announcement incoming \ud83d\udea8 We\u2019re acquiring <a href=\"https:\/\/twitter.com\/x1creditcard?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@x1creditcard<\/a>, a platform that offers a no fee, stainless steel credit card with rewards on every purchase, and an intuitive mobile app experience. This is an important step toward serving all of our customers&#39; financial needs. More info:\u2026 <a href=\"https:\/\/t.co\/VCUjBxkpsM\" target=\"_blank\">pic.twitter.com\/VCUjBxkpsM<\/a><\/p>\n<p>&mdash; Robinhood (@RobinhoodApp) <a href=\"https:\/\/twitter.com\/RobinhoodApp\/status\/1671860663046553602?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">June 22, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As per the statement shared by Robinhood, the deal is expected to mature by the end of September this year. The firm mentioned how taking such a step would enable it to establish close relationships with existing customers.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Robinhood already offers debit cards to its customers that work in a similar fashion to <a href=\"https:\/\/crypto-economy.com\/bitcoin-debit-cards\/\" target=\"_blank\" rel=\"noopener\">Bitcoin debit cards<\/a>, and this deal of acquisition would open new doors to revenue acquisition for the firm with more clients and the chance to issue more cards. <strong>Just last year in July, X1 reported a monthly volume of almost $50 million and highlighted how it expected to reach annualized spending of $1 billion by the end of the year.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Based on the recent earnings report shared by Robinhood, <strong>the total number of monthly active users fell from 16 million to under 12 million. The firm also witnessed a 30% revenue decline year on year<\/strong> in its crypto trading business which resulted in an inflow of $38 million in comparison to $54 million in Q1 of 2022.<\/span><\/p>\n<h2 style=\"text-align: left;\"><span style=\"font-weight: 400;\">Robinhood Seeks to Diversify Its Business<\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-144617 size-full\" src=\"https:\/\/crypto-economy.com\/wp-content\/uploads\/2023\/06\/credit-card-X1.png\" alt=\"Robinhood Seeks to Diversify Its Business\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/06\/credit-card-X1.png 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/06\/credit-card-X1-300x109.png 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/06\/credit-card-X1-768x279.png 768w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/06\/credit-card-X1-18x7.png 18w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><strong>The acquisition of X1 marks the fifth acquisition by <a href=\"https:\/\/crypto-economy.com\/robinhood-unveils-new-feature-for-external-crypto-wallet-access\/\" target=\"_blank\" rel=\"noopener\">Robinhood<\/a>\u00a0over the course of four years.<\/strong> Previously in 2019, the firm acquired the daily financial newsletter MarketSnacks, and this deal was followed by three additional deals in 2021. These deals included the acquisition of the cross-exchange crypto trading platform, Cove Markets, the hiring firm Binc, as well as the shareholder\u2019s platform, Say.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">However, prior to the breakout of the crypto winter, Robinhood also acquired the UK-based crypto asset firm, Ziglu. Furthermore, the topic surrounding the current market valuation of X1 is shrouded in mystery.<strong> X1 claimed that more than 500,000 people were on the waiting list for a credit card<\/strong>. Similarly, the firm raised almost $62 million with the help of venture capital firms over the previous two years. Some of these firms include Craft Ventures, Soma Capital, FPV, and many more.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Robinhood has taken a new step toward the diversification of its business by acquiring X1 in a deal of approximately $95 million. The firm is responsible for the provision of income-based credit cards with a series of rewards. At the same time, users were also offered free trials and single-use credit cards.<\/p>\n","protected":false},"author":22,"featured_media":144618,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[5179,4807],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/144615"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=144615"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/144615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/144618"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=144615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=144615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=144615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}