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

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Thu, 07/01/2021 - 17:29
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Alex Dovbnya
Robinhood is finally going public
Robinhood Files for IPO, Says Dogecoin Accounts for "Substantial Portion" of Its Crypto-Related Revenue
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Popular trading app Robinhood has filed an S-1 draft registration statement with the U.S. Securities and Exchange Commission to go public.  

It is seeking to list its shares on the Nasdaq Stock Market under the "HOOD" ticker, intending to rake in $100 million during its IPO.        

The Menlo Park-headquartered company logged a quarterly loss of $1.4 billion due to a lot of spending on customer acquisition.

The number of total accounts soared to 18 million, with the go-to trading app benefiting from the "meme stock" frenzy.       

Robinhood states that 17 percent of its transaction-based revenue came from cryptocurrencies in the first quarter of 2021. 

It adds that joke cryptocurrency Dogecoin is responsible for "a substantial portion" of its crypto-related revenue. In fact, Dogecoin accounted for 34 percent of its cryptocurrency transactions: 

A substantial portion of the recent growth in our net revenues earned from cryptocurrency transactions is attributable to transactions in Dogecoin. If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected. 

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The company had $11.6 billion worth of crypto under custody as of March 31, which marks a staggering 2,225 percent increase from the $480 million it had last year.     

The biggest chunk of Robinhood's revenue (38 percent) comes from options trading.          

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.