Robinhood Markets (HOOD) shares rose nearly 11% on Wednesday after the company said it will buy a 90% stake in MIAXdx through a new joint venture with Susquehanna International Group. The seller, Miami International Holdings, will keep the other 10%.
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MIAXdx is a fully licensed trading exchange. It is approved by the Commodity Futures Trading Commission to handle contracts, clearing, and swaps. With this deal, Robinhood will become the principal owner of MIAXdx. The company expects the deal to close in the first quarter of 2026, pending regulatory approval.
Meanwhile, HOOD shares have climbed over 240% so far in 2025, beating most companies in its sector.
A Growing Focus on Prediction Markets
This move deepens Robinhood’s plan to build a stronger business in prediction markets. These are markets where users can trade based on real-world events like elections, sports, or interest rates.
Robinhood entered this space in March 2025 through a deal with Kalshi. Since then, the company has traded over 9 billion contracts. More than 1 million users have joined, helping this unit generate over $100 million in annual revenue.
Now, Robinhood plans to launch its own futures and event contracts exchange using MIAXdx’s structure. This should allow the company to offer more products, manage its own clearing, and reduce fees paid to third parties.
How It Helps Robinhood’s Revenue
Piper Sandler’s top analyst, Patrick Moley, said this move could help Robinhood increase its share of profits from each trade. Right now, Robinhood makes around $0.02 per contract but shares that amount with platform partners like Kalshi.
By using MIAXdx, the company could earn closer to $0.0145 per contract while cutting out other parties. Moley said this could boost Robinhood’s income from prediction markets by about 45% and push revenue from this part of the business over $300 million per year.
Wider Market Context
Prediction markets are gaining attention. Competitors include Kalshi, Cboe Global Markets (CBOE), and CME Group (CME). These firms are also exploring event-based contracts.
For Robinhood, the MIAXdx deal offers a way to grow revenue beyond stocks, crypto, and options. The company has been looking to expand its product mix and build new sources of income. The market has responded well to its efforts to grow beyond trading fees and bring more tools in-house.
What Is the Price Target for HOOD Stock?
On the Street, Robinhood boasts a Moderate Buy consensus, based on 21 analysts’ ratings. The average HOOD stock price target stands at $151.63, implying an 18.28% upside from the current price.
