In dramatic breaking news fashion, Robinhood announced to its registered users that the company is going public today. The announcement, sent via email at approximately 11 a.m. Eastern Standard Time on July 29, 2021 reads as follows:
“We really couldn’t have reached this momentous milestone without you, so we put together a special experience to recap how we got here. Take a look back at the journey and ring the bell with us. Oh, and thanks for paving the way to democratize finance for all.”
The announcement invited readers to click through to a page on Robinhood’s website which reads, “It’s IPO Day. Welcome to the new Wall Street. So glad you’re here—what a journey it’s been. Let’s take a walk down memory lane and see how far we’ve come.”
The IPO presentation also has customized data telling users the customer number they were when they first registered to use the platform. Just as a side note, I’m customer #1,594,140.
Currently valued at $32 billion, Robinhood first launched in 2013 with an industry-disrupting “no fees for trades” incentive for novice and experienced traders. This was virtually unheard of in the retail stock trading industry. At the time, companies like Scottrade were considered groundbreaking for charging users between $7 and $9 to use its platform. By 2017, Robinhood had registered 1 million users.
In 2021, the platform, available on phones, tablets and desktops, now includes stocks, options, IPOs, cryptocurrencies, and cash management. Robinhood’s cryptocurrency division has proven extremely profitable for the company, with assets like Dogecoin and Bitcoin accounting for as much as 30% of the company’s revenue.
“The company, which will trade under ticker symbol HOOD, sold 52.4 million shares, raising close to $2 billion. Co-founders Vlad Tenev and Baiju Bhatt each sold about $50 million worth of stock,” according to CNBC.com.
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