Robinhood’s revenues increase on cryptocurrency transactions – .

Robinhood’s revenues increase on cryptocurrency transactions – .

Robinhood Markets Inc.’s revenue more than doubled in the second quarter thanks to a torrent of clients trading cryptocurrency, but the company recorded a significant loss due to an emergency funding deal earlier this year.
The trading app posted a loss of $ 502 million, or $ 2.16 per share, on revenue of $ 565 million in its first earnings report since its IPO in July. In the second quarter of 2020, Robinhood generated a profit of $ 58 million on revenue of $ 244 million.
Nearly 14.2 million Robinhood users, or roughly 63% of the company’s customer base with funded accounts, traded digital assets in the second quarter. Robinhood earned $ 233 million in fees for channeling clients’ cryptocurrency transactions to high-speed trading companies, with dogecoin accounting for almost two-thirds of the volume. That’s an increase from just $ 5 million a year earlier.
This helped offset downturns in other areas of Robinhood’s business, in part due to declining interest in memes stocks. For example, the fees that Robinhood collects when executing client stock trades fell 27% to $ 52 million.
Despite the decline in trading activity, the interest Robinhood received on margin loans nearly tripled to $ 31 million. About 700,000 users held approximately $ 5.4 billion in margin loan balances at the end of June.


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