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Crypto Trading App Robinhood Targets $35 Billion Valuation in Its US IPO

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Mon, 07/19/2021 - 12:57
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Yuri Molchan
Robinhood app aims to be valued at a whopping $35 billion in its massive IPO planned in the US
Crypto Trading App Robinhood Targets $35 Billion Valuation in Its US IPO
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As reported by Reuters, the Robinhood crypto trading platform targets a valuation of $35 billion in its IPO that is will take place in the U.S.

This public offering has already become one of the most highly expected ones this year. The company plans to go public after a confrontation between hedge funds from Wall Street and the new gen of retail investors (including crypto investors) over Gamestop shares, which took place several months ago.

Previously, the Robinhood app was targeting a higher evaluation – up to $40 billion.

Robinhood plans to raise $2.3 billion

The company will offer around 55 million shares during its public offering, hoping to raise more than $2.3 billion from that event. According to the filing, around 2.63 million of those stocks are going to be offered by the app's founders and the CFO. The funds obtained from that will not go to Robinhood's accounts.

As for the shares, the price will be set between $38 and $42, as per a company rep cited by Reuters.

Up to 150 million of Class A common stock is going to be bought by Salesforce Ventures (an investment subsidiary of the Salesforce.com, Inc. software company) at the price set during the public offering.

The company announced its plans to conduct an IPO and filed the necessary documentation for it on July 1, as covered by U.Today.

Related
Robinhood Files for IPO, Says Dogecoin Accounts for "Substantial Portion" of Its Crypto-Related Revenue

Robinhood faced criticism for restricting GME trading

In late January, during the peak of the mania related to the me-stock trading (Gamestop), and the trading of other popular stocks, Robinhood, and a few other trading apps (TD Ameritrade, etc.) restricted the trading of GME, AMC and NOC when these shares reached their peak prices.

The Robinhood founders then explained that this was done to protect investors from possible damages. They were unable to buy any of these popular shares but could still sell them.

Crypto enthusiasts, including prominent Bitcoiner Max Keiser, David Portnoy and Barry Silbert, pointed out fairly that unlike stocks, nobody can restrict the trading of Bitcoin, Ethereum and other cryptocurrencies. It does not cease even on the weekend.

Recently, the Robinhood app added support for Dogecoin, and Elon Musk called this platform the biggest DOGE whale.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.