Robinhood says Dogecoin (DOGE) accounts for a whopping 34% of its cryptocurrency transaction-based revenue in the first quarter of 2021.
In its registration statement for an initial public offering (IPO) filed on Thursday, the company behind the zero-commission trading app reveals that 17% of its total revenue in the first three months of the year are from crypto transactions, up from just 4% in the last three months of 2020.
The firm attributes the growth to a surge in DOGE transactions, which accounts for 6% of the company’s overall revenue of $522.2 million in Q1.
In addition to Dogecoin, Robinhood currently offers Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Bitcoin SV (BSV), Ethereum Classic (ETC) and Litecoin (LTC).
Robinhood’s regulatory filing includes a warning for prospective investors of the volatile nature of digital assets. Since a huge portion of its earnings comes from the meme cryptocurrency, the company says changes in the DOGE market are a risk factor to its business.
“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.
RHC’s business may be adversely affected, and growth in our net revenue earned from cryptocurrency transactions may slow or decline, if the markets for Dogecoin deteriorate or if the price of Dogecoin declines, including as a result of factors such as negative perceptions of Dogecoin or the increased availability of Dogecoin on other cryptocurrency trading platforms.”
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