Robinhood Markets Inc. filed to go public this month, but the filing review process has been slowed down by the SEC due to back-and-forth over its prospectus, Bloomberg reports.
Initially, Robinhood filed for an IPO in March, but according to Bloomberg’s sources, the plan could slip into late summer or even into the fall.
According to sources close to the matter, this is specifically because of questions concerning Robinhood’s growing crypto trading business.
Robinhood launched its crypto business in 2018 and it has grown to now allow users to trade popular cryptocurrencies like Bitcoin, Ethereum, as well as “meme stocks” such as Dogecoin.
According to the company, during the first quarter of 2021, 9.5 million customers traded on Robinhood Crypto.
Robinhood grew popular with novice investors investing in virtual currencies during the COVID-19 pandemic and was a key part of the GameStop trading mania earlier this year.
The Chief Executive Officer of Robinhood, Vlad Tenev, was even called to testify in front of the House of Financial Services Committee in February about Robinhood’s involvement in the frenzy.
Tenev told the committee that the business ultimately fell short, but hoped to learn and improve from the experience.
The SEC is having a busy year for IPOs, which has created a backlog.
According to a March report by Bloomberg, staff at the agency have said that it may take 30 days to review paperwork for SPACs this year, and to expect to wait several weeks to hear back on changes and amendments as well.
Robinhood has become one of Silicon Valley’s most valuable private companies, according to a CNBC article published last month. The company is reportedly valued at around $11.7 billion.
This month, Robinhood appointed three new board members: Jon Rubinstein, Paula Loop, and Robert Zoellick. The company also announced that the app will begin allowing customers to buy into IPOs, including its own.