Crypto Boom Contributes to Robinhood's Substantial Growth in Revenue in Q2 2021

Robinhood Markets Inc. (Robinhood) released on Wednesday its financial results for Q2 2021, ending on June 30. The brokerage's revenue came in at US$565 million, up 131 percent when compared to Q2 2020. However, a significant portion of that was fueled by virtual currencies, primarily Dogecoin.

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Crypto revenue totaled US$233 million in the second quarter, up 4,560 percent from a year earlier, underscoring how the ever-shifting preferences of retail traders play a crucial role in how much revenue the firm generates. That figure exceeded revenue from stock and options trading combined. Dogecoin accounted for 62 percent of crypto revenue in the period.

After reporting the results, Robinhood executives fielded questions from retail investors during a conference call. One person asked whether they could have Robinhood-branded hats and hoodies. Another wanted to know whether Robinhood will provide crypto wallets, which allow users to send and receive virtual currencies without first converting them into dollars. 

"It's something that our teams are working on," Chief Executive Officer Vlad Tenev said, adding that they're in particular demand among Dogecoin enthusiasts. "The ability to deposit and withdraw cryptocurrencies is tricky to do with scale, and we want to make sure it's done correctly and properly."

The surge in crypto revenue reflects increased investor appetite for virtual currencies this year. More than 60 percent of Robinhood accounts traded cryptocurrencies in the second quarter. 

Robinhood's funded accounts reached 22.5 million customers as of June 30, compared with about 9.8 million a year earlier, according to the statement.