Robinhood’s IPO prospectus shows that in the first quarter, 9.5 million customers traded 88 billion U.S. dollars in cryptocurrency on its platform, and the company holds approximately 12 billion U.S. dollars in custody of crypto assets, a 23-fold increase from last year. At the same time, 34% of Robinhood’s cryptocurrency revenue comes from the memetic cryptocurrency Dogecoin.
Robinhood’s IPO prospectus reveals crypto business details
Robinhood Markets Inc. (Robinhood) filed a preliminary prospectus for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on Thursday.
The company, through its subsidiary Robinhood Crypto LLC (RHC), lists “cryptocurrency trading” as one of the products on the Robinhood platform. The company explained that it “provides commission-free cryptocurrency buying and selling” through its subsidiaries. The encrypted trading service was launched on February 20, 2018. The platform currently supports seven cryptocurrencies: Bitcoin, Bitcoin Cash, Bitcoin sv, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.
In the three months ended March 31, Robinhood held nearly $11.6 billion worth of cryptocurrency custody assets. Record details:
For the three months ended March 31, 2021, 17% of our total revenue came from transaction-based revenue from cryptocurrency transactions, compared to 4% for the three months ended December 31, 2020.
Robinhood also wrote: “We believe that the increasing interest and adoption of cryptocurrencies will drive customer interest in our platform, and even in our current customer base, we have a lot of room for growth.”
In addition, the company stated that “a large part of our recent increase in net income from cryptocurrency transactions is attributable to Dogecoin transactions.” For the three months ended March 31, 2021:
34% of our revenue based on cryptocurrency transactions comes from Dogecoin transactions, compared to 4% for the three months ended December 31, 2020.
As of March 31, Robinhood will also expand its coverage to 46 states and Washington, DC. The company also supports real-time market data for 10 cryptocurrencies, which is available to all customers. The company further stated:
In the first quarter of 2021 alone, we saw more than 9.5 million customers traded approximately US$88 billion in cryptocurrency on our platform. As of March 31, 2021, we held approximately US$12 billion in custodial cryptocurrency. Assets increased by 23 times compared to March 31, 2020.
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