Dogecoin drives Robinhood Q2 revenue growth

As Robinhood faces down the reality of substantial losses following its flopped IPO in July, DOGE has emerged as the saving grace behind expansive growth in its crypto retail investor sales.

Sales of Dogecoin on the Robinhood investment app doubled in this year’s Q2 report.

The so-called ‘meme coin’ has accounted for 62% of the company’s crypto asset revenues, demonstrating huge demand from retail traders on the platform.

Elon Musk’s considerable contribution to the DOGE rally has driven the unexpected increase. In July’s IPO documents it lists that Dogecoin accounted for 34% of crypto sales.

Robinhood revealed that its digital asset sales have risen to a staggering $233 million in Q2 of this year. This represents an explosion of crypto trading on the platform over the course of the recent bull run.

The company’s Q1 report showed that around 17% of revenue came from cryptocurrency transactions.

However, despite doubling user-base and sales figures this quarter, the trading platform has still reported significant losses following the flopped IPO. A net loss of $502 million – or $2.16 per share – is much higher than institutional finance had anticipated.

The company responded to these alarming figures with the explanation that a majority of the loss could be attributed to an ongoing accounting problem surrounding conversion valuations and liabilities.

In press comments, Robinhood set investor’s expectations notably low with losses predicted to increase in Q3 due to seasonal declines in trading activity, which the company says will lead to unimpressive user and revenue growth figures.

Crypto markets are reassured, however, as the report also revealed findings that around 52% of all revenue figures relating to transactions on the platform came from crypto trades, and about 60% of the Robinhood user-base traded in virtual assets in Q2 2021.

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