Robinhood Files for IPO, Says Dogecoin Is in Demand

Key Takeaways

  • Robinhood’s S-1 document, filed in preparation for its stock offering, was published online by the U.S. SEC today.
  • The document details Robinhood’s IPO plans alongside details concerning stock and crypto trading revenue.
  • Though Robinhood is primarily a stock trading platform, much of its business involves Dogecoin and other cryptocurrencies.

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Stock and crypto trading service Robinhood has filed an S-1 in preparation for its upcoming IPO, which was published today on the website of the U.S. Securities and Exchange Commission.

IPO Details Revealed

Robinhood aims to raise $100 million through its upcoming IPO sale, though that amount may change in the future.

The stock will be listed on Nasdaq as “HOOD,” and about 20% to 35% of Robinhood’s shares will be available to retail investors.

Several banks will serve as underwriters, including Goldman Sachs, Citigroup, Barclays, JPMorgan, and Wells Fargo.

Robinhood has not yet revealed a date for its IPO. Last week, reports indicated that Robinhood’s IPO would be delayed due to inquiries from the SEC over its crypto trading activities.

Robinhood is not the only trading company in the crypto industry to run an IPO. The popular cryptocurrency exchange Coinbase ran an IPO in April, while Kraken is also planning a listing for 2022.

Business Details Disclosed

Robinhood’s S-1 also revealed several details about its recent business activities. In 2020, the company accrued $7.45 million of net income based on net revenue of $959 million.

This growth is notable in light of the fact that Robinhood saw a $106.6 million loss in 2019 after bringing in $278 million of revenue.

The company also lost $1.4 billion in Q1 2021 due to the GameStop short squeeze, which saw retail investors coordinate investments in certain stocks and cryptocurrencies in order to take advantage of the market. That forced the company to raise funds from its backers.

Robinhood acknowledged in the S-1 filing that it has…

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