As Bitcoin Prices Slide Amid A Market Slowdown, Crypto-Charged Robinhood Seeks $32 Billion IPO Valuation
According to an updated Securities and Exchange Commission filing, Robinhood is expecting to make $2 billion from its initial public offering. This was published Monday, July 19. The eight-year-old fintech giant expects to achieve a $32 Billion valuation with an initial offering price of $38 to $42 per share.
This is despite the fact that crypto markets have been in decline and leading assets like bitcoin and ethereum have lost between 46.14% to 19.68% over the past 3 months. Robinhood’s most important event is the plunge in dogecoin from a record high of $0.76 up to $0.17.
According to the filing, Robinhood’s cryptocurrency transactions accounted for 17% of the company’s total revenue in the three-month period ending March 31, 2021. 34% was driven by dogecoin trades. Just over 14% of the $80.9 billion in total assets under custody by the firm is crypto assets worth $11.5 billion. This is an indication that crypto-driven revenues could continue to decline due to falling retail interest in cryptocurrency and assets like bitcoin remaining in low price ranges.
Our revenue for the three-months ending September 30, 2021 will be lower than the three-months ended June 30, 2020. This is due to decreased trading activity relative to record trading activity in cryptocurrencies during the three month ended June 30, 20,21 and seasonality.
Robinhood will soon go public, but the date is yet to be determined. Investors will also pay attention to other cryptocurrency-affiliated stocks, such as Coinbase, which can provide a signal for investor interest. On April 14th, the crypto giant went public via the largest direct listing ever. It achieved a valuation of $86 billion. Despite record revenues and profits, the stock’s current price of $221 is still more than half of its historic high of $429.