- Popular stock and cryptocurrency trading app company Robinhood has filed confidentially for an IPO yesterday. These are the details.
Popular stock and cryptocurrency trading app company Robinhood has filed confidentially for an IPO yesterday. This was confirmed in a filing submitted to the U.S. Securities and Exchange Commission (SEC).
The company could go public as soon as of the end of Q2, but that timeline potentially change. Over the past year, Robinhood saw a surge in users during the pandemic due to shelter-in-place guidelines. And Robinhood had become a platform of choice due to the intuitiveness of its app design and the gamification features.
However, Robinhood had been criticized for how it handled the Reddit-fueled short squeeze in late January. Robinhood had to freeze the ability to purchase the so-called “meme stocks” during the short squeeze due to issues with clearinghouse deposit requirements “skyrocketing overnight.” In order to comply and allow for the trading of the “meme” stocks again, Robinhood had to raise billions of dollars from its investors.
“The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions,” wrote Robinhood in a blog post.
