eToro crypto trades fall 73% as it agrees $231M TradeZero deal

eToro reported that retail crypto trades on its platform dropped 73% year‑over‑year in July to 1.4 million trades. The average amount invested per crypto trade fell to $182 in the month.

The July decline followed a second quarter in which eToro’s net contribution rose 9% to $229 million and GAAP net income increased 77% to $53 million. The company highlighted strength in its CopyTrading product without providing a specific figure for its impact.

In its quarterly filing, eToro disclosed $1.346 billion of cryptoasset revenue, $1.354 billion of cryptoasset cost of revenue and $19.7 million of net trading income from cryptoasset derivatives for the quarter. Those figures imply roughly $12.5 million of net trading contribution from cryptoassets before operating overhead and excluding blockchain rewards and staking; the filing cautioned that this should not be read as segment profit.

Under an agreement announced in the update, eToro will acquire TradeZero for cash and up to 2.5 million new Class A shares, with aggregate consideration capped at approximately $231 million, subject to customary purchase‑price adjustments. TradeZero generated about $80 million of revenue in the 12 months ended June 30 and reported an 81% gross margin in the second quarter, according to eToro’s filing.

eToro said the acquisition will add broker‑dealer infrastructure, proprietary trading tools and a community focused on active stock trading, and expects the deal to be accretive to adjusted earnings per share in the first year after completion. The transaction requires regulatory approval and other customary conditions; eToro has targeted a close in the first half of 2027 if approvals are obtained.

The company held $1.2 billion in cash, cash equivalents and short‑term investments as of June 30. Earlier this year, eToro announced an agreement to acquire Zengo, a crypto wallet provider, to broaden self‑custody and on‑chain capabilities. The filing stated the TradeZero acquisition is consistent with expanding from a profitable multi‑asset base and did not state that the decline in crypto activity alone motivated the purchase.