Customers who trade with Robinhood Markets are signaling that cryptocurrencies are becoming more mainstream for the newer generation of individual investors.
The quarter reported was the second quarter in which a larger share of new customers placed their first trade in crypto than stocks. The firm disclosed its first profit report as a public company, with more than 60% of our net cumulative accounts trading in crypto during the first quarter.
Revenues from cryptocurrencies rose to $233 million, a jump from just $5 million during the same quarter last year.
A whopping 62% of crypto trading volume was in Dogecoin, the company disclosed during its earnings call.
Doge hit an all-time high of around 74 cents in the quarter and has advanced more than 6,300% this year. What is Elon Musk, who often tweets about CNBC, backing up positive comments on the currency made by billionaire Mark Cuban to Dogecoin (Standard : "I've been tweeting this for awhile" I've been saying this for awhile already", he tweeted.
Robinhood did warn of seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new accounts than in the prior quarter pressuring the shares.
Bitcoin, the largest digital currency by market value, hit a record $64,829 in April before sinking and currently sitting at $46,000 level according to Coindesk.
Robinhood reported a net loss of $502 million, or $2.16 per diluted share, compared with a net income of $58 million, or 9 cents per diluted share, a year ago. Total net revenues surged 131% to $565 million, compared to $244 million during the same period a year ago.