As retail crypto trades collapse 73%, eToro drops $231 million to capture active US stock traders
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Retail crypto activity at eToro collapsed in July with 1.4 million crypto trades, down 73% year‑over‑year and an average trade size halved to $182, while Q2 crypto accounting implies only about $12.5 million of net trading contribution despite $1.346 billion of cryptoasset revenue and $1.354 billion of crypto cost of revenue. To diversify and pursue US adoption, eToro said on Aug. 11 it will pay up to $231 million (cash and up to 2.5 million Class A shares) for TradeZero, which generated roughly $80 million of revenue in the 12 months to June 30 and is expected to be accretive to adjusted EPS when it closes (target H1 2027), even as eToro advances crypto self‑custody via its Zengo deal and holds $1.2 billion of cash.
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eToro’s users executed 1.4 million crypto trades in July, down 73% from a year earlier. The average amount invested per trade halved to $182. In the same Aug. 11 update, the trading platform agreed to pay consideration of up to $231 million for TradeZero. TradeZero is a US-focused brokerage serving active stock traders.
The combination is consistent with eToro expanding from a profitable multi-asset base, not a company in broad distress. It does not establish that the crypto decline motivated the acquisition.
Meanwhile, the July slowdown followed a second quarter in which eToro’s net contribution rose 9% to $229 million. GAAP net income increased 77% to $53 million. Therefore, the filing indicates that stronger equity trading helped offset weaker crypto contribution. Management separately cited unquantified strength in CopyTrading.
However, eToro’s crypto accounting requires care. It reported $1.346 billion of second-quarter cryptoasset revenue, but that was a gross figure rather than segment profit. The company also booked $1.354 billion of cryptoasset cost of revenue and $19.7 million of net trading income from cryptoasset derivatives.
Taken together, those figures imply approximately $12.5 million of net trading contribution from cryptoassets, excluding net blockchain-reward and staking contribution. That calculated contribution measure is recorded before operating overhead. It should not be read as segment profit.
TradeZero adds an active-stock engine
Under the acquisition agreement, eToro expects to pay cash and issue up to 2.5 million new Class A shares. Aggregate consideration could reach $231 million, subject to customary purchase-price adjustments.
Separately, TradeZero generated approximately $80 million of revenue in the 12 months ended June 30. It recorded an 81% gross margin in the second quarter, according to eToro. The target brings broker-dealer infrastructure, proprietary trading tools and a community centered on active stock trading.
In addition, eToro said TradeZero gives it a faster route to new US products. The company expects the transaction to add to adjusted earnings per share in the first year after completion. It expects the deal to close in the first half of 2027, subject to regulatory approvals and other customary conditions.
Even so, that stated US-expansion rationale is different from abandoning crypto. In April, eToro announced an agreement to acquire Zengo, a crypto wallet provider. The move would deepen its self-custody and on-chain capabilities as eToro continues to broaden traditional-market infrastructure.
Finally, eToro reported $1.2 billion in cash, cash equivalents and short-term investments at June 30. TradeZero still requires regulatory clearance and integration. If completed as planned, the brokerage could reduce eToro’s dependence on any single asset class. That potential benefit remains conditional on closing the transaction and absorbing the business successfully.
The post As retail crypto trades collapse 73%, eToro drops $231 million to capture active US stock traders appeared first on CryptoSlate.
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