Robinhood holds $ 11.6 billion in crypto ahead of the IPO. But most of it is in Dogecoin
Robinhood is preparing to go public, and it has revealed the contents of its platform. The trading platform holds more than $ 11 billion in cryptocurrencies. However, he said that most of his cryptocurrency business depends on Dogecoin.
Robinhood reveals Crypto Holdings
Robinhood, one of the world’s leading trading platforms, is preparing to go public through an Initial Public Offering (IPO). The company filed Form S-1 with the United States Securities and Exchange Commission (SEC) earlier this week.
According to filing S-1Robinhood said its cryptocurrency business has grown massively over the past year. Currently, Robinhood holds $ 11.6 billion in cryptocurrency, up from $ 480 million a year earlier.
The trading platform added that in the first quarter of 2021, 17% of its overall revenue came from crypto trading. The company is looking to raise $ 100 million as part of its IPO process. Robinhood will list its shares on the NASDAQ stock exchange under the symbol HOOD. In total, Robinhood generated $ 959 million in revenue in 2020, including $ 7.5 million in profit. Rising stocks of memes and cryptocurrencies helped the company record huge revenue and profit numbers last year.
Dogecoin accounts for the bulk of Robinhood’s crypto trading volume
Despite holding more than $ 11 billion in cryptocurrency, Robinhood warned that most of them are in Dogecoin. Dogecoin is the main coin, and its price has been found to be very volatile. It jumped more than 6,000% earlier this year, reaching a record high of around $ 0.70 before falling to currently trading at $ 0.24 per coin.
The company has stated that there are risks associated with trading its risk as it holds a substantial amount of its crypto in Dogecoin. Dogecoin accounted for 6% of Robinhood’s overall revenue last year.
Robinhood wrote, “If the demand for Dogecoin transactions decreases and is not replaced by a new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and operating results could be affected. “
At the time of this report, DOGE is down 3% in the last 24 hours and is trading above $ 0.2. This despite Elon Musk’s cryptocurrency tweet earlier this week.
This item was originally posted on FX Empire