Robinhood is preparing to go public, and it has revealed the contents of its platform. The trading platform holds over $11 billion in cryptocurrencies. However, it said most of its cryptocurrency business is n reliant on Dogecoin.
Robinhood Reveals Crypto Holdings
Robinhood, one of the leading trading platforms in the world, is preparing to go public via an initial public offering (IPO). The company filed the S-1 form with the United States Securities and Exchange Commission (SEC) earlier this week.
According to the S-1 filing, Robinhood said its cryptocurrency business had experienced massive growth over the past year. At the moment, Robinhood holds $11.6 billion in cryptocurrencies, compared to the $480 million it held a year before.
The trading platform added that in Q1 2021, 17% of its overall revenue came from crypto trading. The company seeks to raise $100 million as part of its IPO process. Robinhood will list its shares on the NASDAQ stock exchange under the ticker symbol HOOD. Overall, Robinhood generated $959 million in revenue in 2020, with $7.5 million as profits. The rise in meme stocks and cryptocurrencies helped the company to record massive figures in revenue and profits last year.
Dogecoin Makes Up Most Of Robinhood’s Crypto Trading Volume
Despite holding over $11 billion in cryptocurrencies, Robinhood warned that most of it are in Dogecoin. Dogecoin is the leading meme coin, and its price has proven to be highly volatile. It surged by over 6,000% earlier this year, reaching an all-time high around $0.70 before declining to currently trade at $0.24 per coin.
The company said there are risks associated with trading its risk since it holds a substantial amount of its crypto in Dogecoin. Dogecoin accounted for 6% of Robinhood’s overall revenue last year.
Robinhood wrote, “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.”
At the time of this report, DOGE is down by 3% over the past 24 hours and is trading above $0.2. This is despite Elon Musk tweeting about the cryptocurrency earlier this week.