eToro to Acquire TradeZero Amid Sharp Drop in Crypto Revenue

Trading platform eToro reported total revenue of $1.59 billion for the second quarter, down from $2 billion during the same period last year. Crypto related revenue made up the bulk of that total at $1.34 billion, marking roughly a 30% decline compared to the previous year. Despite the drop, the company posted net income of $53.4 million overall, including $19.7 million tied directly to crypto assets, while equities and commodities trading contributed a stronger $141 million in net income.

US Expansion Through TradeZero Acquisition

As part of its push to become a broader multi-asset trading platform, eToro announced plans to acquire US-based online brokerage TradeZero. The acquired firm generated about $80 million in revenue with strong profit margins over the past year, and eToro expects the deal to boost earnings per share within the first year after closing. This follows an earlier move into digital asset infrastructure, including plans announced in April to acquire a self-custodial wallet provider.

User Behavior Shows Cross-Asset Trading Trends

eToro’s chief financial officer noted that a majority of users who traded commodities in recent quarters went on to trade equities, with most of those users also engaging in crypto trading on the platform, highlighting growing overlap across asset classes. Still, total cryptocurrency trades fell sharply to 1.4 million in July, a 73% year-over-year decline, with invested amounts also dropping by half. Shares of the company fell in pre-market trading following the announcement, extending losses from the previous session.

 ETOR shares were down more than 5% in pre-market activity.