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Robinhood acquired credit card startup X1 for $95 million. X1 is a fintech company that offers services like free trial and disposable credit cards. The acquisition was made to diversify Robinhood's business and strengthen its relationships with existing customers. X1's monthly trading volume was announced as $50 million, and Robinhood is aiming to reach $1 billion in trading volume by the end of the year.
According to its latest earnings report, Robinhood's active user count fell below 12 million in the first quarter of 2023. Also, there was an annual drop of about 30% in crypto trading revenues. This is Robinhood's fifth acquisition in the last four years.
The current value of X1 is unknown, but it is stated to have a credit card waiting list of 500,000 in 2022. X1 has raised over $60 million in funding from venture capital firms, including Wesley Chan's venture firm FPV.
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