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Robinhood's revenue from cryptocurrency trading has increased to 41% of total revenue

Robinhood said on Wednesday that fees on cryptocurrency trading were for 41% of its overall income in the second quarter, up from 17% in the first. Over 60% of its clients exchanged cryptos in the quarter, according to the company.

• Cryptocurrency-based revenue was $233 million in the second quarter, up from $5 million the year before.

• The trading of dogecoin accounted for 62 percent of Robinhood's cryptocurrency income in the second quarter, up from 34 percent in the first quarter.

• In its earnings report, Robinhood identified this significant dependence as a concern. “Our business, financial health, and results of operations may be negatively impacted if demand for Dogecoin transactions decreases and is not replaced by fresh demand for other cryptocurrencies accessible for trade on our platform,” the firm said.

• Robinhood's first earnings report as a public business was released on Wednesday. Overall, the firm lost $2.16 per share, against consensus expectations of 26 cents per share. It made $565 million in sales, above expectations of $559.5 million.

• The firm also said that it expects decreased sales in the third quarter. “We anticipate reduced revenues and significantly fewer funded accounts for the three months ending September 30, 2021, as a consequence of seasonal headwinds and decreased trading activity throughout the industry,” the firm said.

• Following the publication of the report, shares fell almost 6% to $46.94 in after-hours trade on Wednesday. The business went public on July 28 with an IPO price of $38 per share and a first-day trading loss of 8%.

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