Robinhood reported Wednesday that the percentage of its total revenue derived from commissions on cryptocurrency trading jumped to 41% in the second quarter, up from 17% in the first quarter. Customers can currently buy and sell bitcoin, ether and doge.
- Robinhood specified that 62% of its cryptocurrency revenues came from the trading of dogecoin, up from 34% in the first quarter.
- Robinhood noted this heavy reliance as a risk factor in its second quarter earnings report. “If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected,” the company wrote.
- Wednesday’s report was Robinhood’s first earnings report as a public company. Overall, the company lost an adjusted $2.16 per share, compared to consensus estimates for a loss of 26 cents per share. It recorded revenue of $565 million, ahead of estimates for $559.5 million.
- Shares were down almost 6% in after-hours trading to $46.94 on Wednesday following the release of the report. They rose almost 7% during the day.
Source: Coindesk
