Cryptocurrency trading accounted for around 41 percent of Robinhood’s quarterly income, with Dogecoin being a major contributor.
Cryptocurrency trading has grown in popularity on Robinhood’s platform, which now accounts for 41 percent of the company’s income, according to the popular retail trading app.
Following the publication of its second-quarter financial results on August 18, the company reported that it generated $233 million from crypto trading services for the quarter, an increase from $5 million for the entire year 2020. During the second quarter of 2021, more than 60% of Robinhood accounts with funds exchanged digital assets.
As a result of the speculative dog-token trading frenzy that began in early 2021, a whopping 62 percent of Robinhood’s cryptocurrency earnings was obtained from Dogecoin transactions.
Interestingly, this is the first earnings report produced by Robinhood since it became a publicly-traded firm. Vlad Teev, co-founder and CEO of Robinhood, made the following statement:
“We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood.”
Overall revenue for the quarter totalled $565 million, representing a 131 percent increase over the previous quarter’s $244 million. Monthly active users climbed by more than a twofold year on year (YoY), from 10.2 million to 21.3 million, while funded accounts increased by a whopping 130% during the same period.
The value of assets under Robinhood’s custody increased by threefold year on year, reaching $102 billion.
Despite the increase in cryptocurrency sales, Robinhood reported a net loss of $464 million for the second quarter. The losses, on the other hand, are attributable to accounting changes resulting from the fluctuating value of warrants and notes owned by the corporation.
