NEW YORK (AP) — After serving to a brand new technology of buyers get into shares, Robinhood is more and more doing the identical for cryptocurrencies.
Greater than $4 of each $10 that Robinhood Markets Inc. made in income throughout the spring got here simply from clients buying and selling bitcoin, dogecoin and different cryptocurrencies.
Robinhood additionally mentioned Wednesday that it misplaced $501.7 million, or $2.16 per share, in contrast with a revenue of $57.6 million, or 9 cents per share, in final 12 months’s second quarter.
The loss was no shock after the corporate had earlier given preliminary estimated outcomes for the quarter. The corporate’s slowdown in income progress was additionally anticipated: It greater than halved to 131% from 309% within the first three months of the 12 months.
However the diploma of the sharp rise in crypto’s significance to Robinhood’s enterprise was placing. Cryptocurrencies made up 41% of all of Robinhood’s $565.3 million in income. That’s up from 17% within the first three months of the 12 months and from simply 3% at first of final 12 months. The spring marked the primary quarter for Robinhood the place new clients had been extra prone to make their first commerce in cryptocurrencies fairly than in shares.
Shares in Robinhood, which relies in Menlo Park, California, have moved sharply up and down since they started buying and selling at $38 on July 29, veering between $33.25 and $85. They had been down 6.8% in after-hours buying and selling, after rising 6.7% Wednesday to shut at $49.80.
Copyright 2021 The Associated Press. All rights reserved. This materials will not be printed, broadcast, rewritten or redistributed.