Robinhood, a popular trading app, is the latest digital currency company to declare an IPO, continuing a long line of crypto companies that have gone public (initial public offering). According to a statement filed with the Securities and Exchange Commission, the corporation claims that the event it plans to organize in the coming months will bring in as much as $2 billion in fresh money (SEC).
It’s Time for Robinhood to Make Its Public Debut
The price range for the stock will be between $38 and $42. The eight-year-old corporation is expected to be valued at over $32 billion following the sale.
At first, everything appears to be in order. The problem is that bitcoin, which Robinhood looks to be highly invested in, has been in decline recently, and trade has ceased. Bitcoin’s entire value has plummeted by more than half, with the previous all-time high of $64,000 in mid-April now appearing to be a fantasy of traders’ imaginations. The world’s most valuable digital currency, by market capitalization, is now trading around $29,000.
Even Robinhood appears to recognize that trading has largely faded from the public eye. According to its SEC filing, it even expects revenue to decline in the following three months, so why host this event now? The following is an excerpt from the document:
Due to lower levels of trading activity relative to the record highs in trading activity, particularly in cryptocurrencies, during the three months ended June 30, 2021, and expected seasonality, we expect our revenue for the three months ending September 30, 2021 to be lower than for the three months ended June 30, 2021.
This Continually Occurs
The startup appears to be following in the footsteps of both Coinbase and Circle, which filed to go public in mid-April, right around the time bitcoin hit its all-time high for the year. Circle quickly followed suit, announcing that it would hold an initial public offering later this year. Jeremy Allaire, the company’s CEO and co-founder, stated:
We had a really significant increase in USDC at the start of the year, as well as very great traction with new products and services that we were offering. In our opinion, we were in a unique position to swiftly establish and scale a large franchise centered on supplying digital currency-based financial services all over the world. It’s a once-in-a-lifetime opportunity to not only raise that amount of money but also to change the firm into one that is accountable to the public.