Robinhood Crypto Trading App Looks to Secure $200 Million In Funds Per Bloomberg Report
Robinhood, the crypto and stock trading app popular among Millennials, is ready to raise $200 million in a funding round. This is according to a recent report released by Bloomberg. The report says that a source familiar with the matter explained some of the details of this new funding round.
According to an unspecified source close to the company, explained to Bloomberg that they are searching to raise $200 million in funds. At the same time, this would increase the firm’s value to as much as $8 billion. However, the details could change in the future.
At the same time other individuals that are familiar with the matter, said that these funds come from investors that have already placed their money on the company. However, all these investors asked not to be identified and to preserve their identities. If there is another funding round, the valuation of the company could eventually reach $10 billion. But, as mentioned before, these numbers can change if the deal is not closed.
The platform allows users to trade different stocks and cryptocurrencies without having to pay for fees. The firm works with a different business model compared to traditional crypto exchanges such as Binance or Coinbase. Robinhood earns money by selling premium subscriptions that allow users to have access to leverage trading and other features. The price for a premium subscription costs between $10 and $200 per month.
At the same time, the firm makes profits by lending money that users hold in Robinhood accounts. Furthermore, they sell orders that users make to high-volume crypto exchanges that are searching for more liquidity.
The company continues to expand in the United States after being granted a BitLicense license a few months ago. Additionally, the co-CEO of the platform, Naiju Bhatt, explained that bitcoin and virtual currencies have helped the firm grow and that in the next years, they are going to move towards a full-service consumer finance company.
Latest Robinhood Crypto Trading App News