Mizuho's Dan Dolev on how closely Robinhood is tied to crypto

Core Insights - Bitcoin has recently dropped to just under 104,000, marking its lowest level in nearly four months, before recovering slightly to 107,000 [1] - The decline in Bitcoin has negatively impacted companies in the crypto ecosystem, including Robinhood and Coinbase, with Robinhood down over 15% and Coinbase experiencing its worst week since April [1] Company Exposure to Crypto - Robinhood is less exposed to crypto volatility than many believe, providing a balanced exposure that allows it to benefit from crypto gains while not suffering as much during downturns [2] - The company is diversifying its business model by entering less volatile verticals such as retirement and expanding into international markets, which may insulate it from market dynamics in the future [4][5] Performance of Coinbase - Coinbase is more susceptible to market volatility due to its reliance on altcoins, which tend to decline when Bitcoin falls, making it a riskier investment compared to Robinhood [6] MicroStrategy's Position - MicroStrategy is viewed favorably, with predictions that Bitcoin will rise by the end of the year, leading to an outperform rating for the company [8] - The performance of MicroStrategy is closely tied to Bitcoin's price movements, and owning such stocks can be more challenging during Bitcoin's downturns [9]