Income at Robinhood Markets Inc. greater than doubled within the second quarter due to a torrent of consumers buying and selling cryptocurrency, however the firm posted a giant loss on account of an emergency funding deal earlier this yr.
The buying and selling app recorded a lack of $502 million, or $2.16 per share, on income of $565 million in its first earnings report since its July initial public offering. Within the second quarter of 2020, Robinhood generated a revenue of $58 million on income of $244 million.
Almost 14.2 million Robinhood customers, or roughly 63% of the corporate’s buyer base with funded accounts, traded digital belongings within the second quarter. Robinhood earned $233 million in charges from routing prospects’ cryptocurrency trades to high-speed buying and selling companies, with dogecoin accounting for practically two-thirds of the amount. That’s up from simply $5 million a yr earlier.
That helped offset slowdowns in different elements of Robinhood’s enterprise due partly to waning curiosity in meme shares. As an example, charges Robinhood earned executing prospects’ inventory trades fell 27% to $52 million.
Regardless of decreased stock-trading exercise, curiosity that Robinhood acquired on margin loans practically tripled to $31 million. Round 700,000 customers held about $5.4 billion in margin-loan balances on the finish of June.