Robinhood Reveals in IPO Filing That Its Revenue Is Mostly Attributed to Doge!
The online stockbroker at the heart of Wall Street, Robinhood, is gearing up for one of the year’s most eagerly awaited initial public offerings. The business intends to trade on the Nasdaq under the symbol “HOOD.”
During the pandemic-induced lockdowns, Robinhood’s sales soared, thanks to a rise in trading by average Americans locked at home. According to the IPO filing, the company’s revenue increased by 245 percent last year.
Millions of new investors were undoubtedly attracted to Robinhood by the idea of no-fee mobile investing. According to Robinhood, nearly half of all new retail-funded accounts launched in the United States between 2016 and 2021 were formed on the platform. New account data from publicly disclosed peer brokerage was cited by the app. It has almost 18 million monthly active users and 32 million email and podcast subscribers.
It has gained a significant market share, increasing its crypto Assets Under Management from $480 million to the current amount.
Robinhood intends to distribute between 20% and 35% of its first public offering (IPO) shares to its retail consumers.
Doge the HERO?
Transactions in Dogecoin accounted for 34% of their cryptocurrency transaction-based revenue. During the same period, revenue from cryptocurrency transactions increased from 4% in the last three months of 2020 to 12% in the first three months of 2021.
“A substantial portion of the recent growth in our net revenues earned from cryptocurrency transactions is attributable to transactions in Dogecoin,” the company said in its filing.
Elon Musk’s involvement on Dogecoin has resulted in the coin getting listed on a number of cryptocurrency exchanges.
Robinhood had planned to go public in June, but the process was slowed due to an SEC review. Bloomberg reported on June 24 that the SEC was investigating its cryptocurrency business, while it added that such investigations are not uncommon.