SEC Delays Robinhood IPO As a consequence of Crypto Ties: Report

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The SEC has reportedly delayed Robinhood from holding an IPO because of considerations over the buying and selling’s app crypto enterprise.

Robinhood IPO Affected by Crypto

The Securities and Alternate Fee (SEC) has stalled Robinhood from holding an IPO as a result of agency’s crypto pursuits, Bloomberg has reported.

Based on sources quoted within the report, the U.S. agency has engaged in discussions with regulators over the previous couple of weeks.

The report added that the questions offered to Robinhood have been targeted on the agency’s crypto operation. The names of the personnel have been withheld as it’s an ongoing non-public matter.

Robinhood at the moment permits buying and selling in seven cryptocurrencies: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Bitcoin SV, Ethereum Traditional.

Based on the corporate’s newest monetary report, it surpassed 13 million customers in 2020, with a 500% enhance in income since 2019. The expansion of the agency has continued into 2021. In January, the corporate added 3 million customers to its crypto arm. The buying and selling app was on the middle of the GameStop squeeze led by Reddit group WallStreetBets, in addition to an orchestrated Dogecoin pump, on the identical time.

The corporate had initially deliberate to go public through an Preliminary Public Providing in June. The itemizing was then delayed till July due to the vacation season. Based on the Bloomberg report, the proposed IPO might now be delayed till fall.

Earlier than the pandemic, Robinhood had raised funds at a valuation of $11.7 billion. The present projected valuation of the agency in secondary markets is $40 billion.

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