The typical soldier within the army of retail traders upending Wall Street may be a 31-year old who grabs their smartphone seven times each day to see the assets in their first-ever account, which can well hold an honest chunk of cryptocurrencies additionally to stocks. Those broad strokes describing retail traders are among the nuggets found within the Dominion Day filing by online brokerage Robinhood Markets, which is aiming for an initial public offering worth over $40 billion. In its filing, the firm includes facts about its quite 18 million customers and describes a number of the potential risks of investing within the company, which increased its headcount from 289 in December 2018 to quite 2,100 in March of this year as retail trading took off.
The detailed breakdown of Robinhood’s user base offers a glimpse at the individual trader’s gathering in online forums like Reddit’s WallStreetBets, whose activity has helped fuel wild rides in shares of computer game retailer GameStop, movies chain AMC Entertainment Holdings, and a slew of other so-called meme stocks. Here are a couple of highlights from the filing: — As of March 31, 2021, the median age of consumers on the company’s platform was 31. — From January 1, 2015, to March 31, 2021, over half the purchasers funding accounts on the platform said Robinhood was their first account. — Customers visited the app a mean of nearly seven times each day in 2020, a year that saw wild swings in markets within the wake of the coronavirus pandemic. — The firm believes that on the brink of 50% of all new retail funded accounts opened within us from 2016 to 2021 were new accounts created on Robinhood. — Robinhood’s assets under custody at the top of 2021’s half-moon include roughly $65 billion in equities, $2 billion in options, $11.6 billion in cryptocurrencies, and $7.6 billion in cash.
Cryptocurrencies are huge for the corporate. within the half-moon, Robinhood saw over 9.5 million customers trade about $88 billion of cryptocurrency on the platform. Crypto assets have grown 23-fold between March 31, 2020, and therefore the end of this year’s half-moon. — a considerable portion of the recent growth in Robinhood’s net revenue is earned from transactions due to Dogecoin, the corporate said. the worth of Dogecoin, which has been touted by billionaire entrepreneur Elon Musk, has surged by quite 10,000% within the past year, consistent with Coingecko.com.
“If demand for transactions in Dogecoin declines and isn’t replaced by new demand for other cryptocurrencies available for trading on our platform, our business, economic condition, and results of operations might be adversely affected,” the filing said. — Most Robinhood customers are primarily buy-and-hold investors, the corporate said, echoing a refrain often heard on WallStreetBets, where users exhort one another to carry onto their favorite meme stocks within the face of eye-popping volatility. (Reporting by David Randall and Sinead Carew; Additional reporting by Ira Iosebashvili; Editing by Stephen Coates)