Robinhood Files for IPO, Says Dogecoin Accounts for “Substantial Portion” of Its Crypto-Related Revenue
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.
It logged a quarterly loss of $1.4 billion dollars due a lot of spending on customer acquisition. The number of total accounts soared to 18 million.
Robinhood states that 17 percent of its transaction-based revenue came from cryptocurrencies in the first quarter of 2021.
It adds that Dogecoin is responsible for “a substantial portion” of its crypto-related revenue:
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.
In fact, Dogecoin accounted for 34 percent of its cryptocurrency transactions.
The company had $12 billion worth of crypto under custody as of March 31.