As bitcoin prices slide amid market downturn, crypto-laden Robinhood seeks $ 32 billion IPO valuation

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Photo by: STRF / STAR MAX / IPx 2021 02/26/21 Robinhood plans to file an initial public offering … [+] (IPO) from March. STAR MAX photo: The Robinhood logo photographed on a 2020 iPhone SE.

STRF / STAR MAX / IPx

Investment platform Robinhood expects to release $ 2 billion in proceeds from its initial public offering, according to an updated Securities and Exchange Commission file released on Monday, July 19. With an initial offering price of between $ 38 and $ 42 per share, the fintech giant is expected to reach a valuation of $ 32 billion.

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This transport is expected despite a downturn in the crypto markets which has seen the value of major assets such as bitcoin and ethereum lose between 46.14% and 19.68% of their value respectively over the past 3 months. Perhaps even more significant for Robinhood is the decline in dogecoin from an all-time high of $ 0.76 to $ 0.17.

Bitcoin and Ether have fallen in recent months

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According to the file, Robinhoods crypto transactions accounted for 17% of the company’s total revenue for the three months ended March 31, 2021, of which 34% was through dogecoin trading. The company has $ 11.5 billion in crypto assets on deposit, representing just over 14% of its $ 80.9 billion in assets on deposit. As expected, given the market downturn, this is a warning that crypto-generated revenue could decline further as retailer interest in cryptocurrency declines and assets like bitcoin get stuck. in narrow price ranges.

Bitcoin’s price range has narrowed in recent months

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“We expect our revenues for the quarter ended September 30, 2021 to be lower than the quarter ended June 30, 2021, due to lower levels of trading activity from record levels of trading activity, in particularly in cryptocurrencies, during the three months ended June 30, 2021, and the expected seasonality. ”

As Robinhood prepares to go public on an as yet unspecified date, investors will pay close attention to other crypto-affiliated stocks that can serve as a barometer for investor interest, such as Coinbase (COIN). The crypto giant went public on April 14 via the largest direct listing in history, reaching a valuation of $ 86 billion. However, the stock currently priced at $ 221 is over 50% of its all-time high of $ 429 despite record revenues and profits.

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