Robinhood acquires X1, a credit card fintech, for $95M.

Crypto trading app Robinhood has acquired X1, a credit card startup, in a $95 million deal as part of its effort to diversify its business portfolio. X1 offers an income-based credit card with rewards, free trial, and single-use credit cards. Robinhood expects to close the deal by the end of September and sees it as an important step towards building a deeper relationship with its existing customers. The acquisition provides Robinhood with a new revenue stream, as X1 reported $50 million in monthly volume and was expecting to reach $1 billion in annualized spend by the end of the year. Robinhood’s latest earnings report shows a decline in its monthly active users base and a 30% year-on-year revenue decline for its crypto trading business. X1 is Robinhood’s fifth acquisition in four years, following MarketSnacks, Cove Markets, Binc, and Say. X1’s current valuation is unknown, but the company claimed to have 500,000 people on its waiting list for a credit card in 2022. X1 has raised over $60 million from venture capital firms such as Craft Ventures, Soma Capital, and FPV.