Robinhood, one of the most prominent trading platforms globally, is getting ready to go public through an IPO (or initial public offering). The corporation, earlier this week, filed the S-1 form with the SEC (the US Securities and Exchange Commission).
As per the S-1 filing, the trading platform revealed that its crypto business had seen exponential growth throughout the past year. As of now, Robinhood happens to hold 11.6 billion USD in crypto. This is compared to the 480 million USD the platform had held a year earlier.
Robinhood added that in Q1 this year, 17% of its total revenue was generated from cryptocurrency trading. The corporation is aiming to raise 100 million USD, i.e., a part of its IPO operation. Robinhood is set to reveal its stakes on the NASDAQ stock exchange under the stock symbol “HOOD”.
Generally, the platform produced 959 million USD worth of revenue last year, 7.5 million USD being profits. The upsurge in meme stocks and crypto aided the company to register tremendous figures in profits and revenue in 2020.
Despite the fact that it holds upwards of 11 billion USD in crypto, Robinhood issued a warning saying that a vast majority of it is in Dogecoin. Dogecoin has proven to be the leading meme-based crypto coin, its value has also proven to be extremely volatile in nature. This year, it surged by over 6000 percent, accomplishing a historical peak of around 0.70 USD before falling to, at present, trade at 0.24 USD per coin.
The company revealed that there are risks involved with trading its risk because it holds a large amount of its cryptocurrency in Dogecoin. Dogecoin happened to account for 6% of Robinhood’s total revenue in 2020.