Summary List PlacementRobinhood raised $1 billion from its existing investors today, The New York Times reported.
The firm is struggling to handle a surge in trading on the platform including a variety of stocks that have been the target of brief squeezes, driven mainly by the WallStreetBets Reddit forum, a group of retail traders that helped drive up the share rates of GameStop and AMC Theaters, among others.
Robinhood CEO Vlad Tenev said Thursday that the company did not have liquidity concerns, after Bloomberg reported that the company had borrowed “a minimum of several hundred million dollars” from banks in the middle of the trading turmoil.
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The trading platform also temporarily stopped purchases of specific stocks, stimulating outrage from legislators and business leaders.
In an e-mail sent to Robinhood users on Thursday, the company stated restricted purchases of those stocks would be permitted on Friday, but that it would continue to “keep an eye on the circumstance and may make changes as required.”.
” To be clear, the choice was not made on the instructions of any market maker we path to or other market participants,” the declaration continued..
Robinhood was still in need of more cash to prevent implementing further trading limitations, 2 sources told The Times.
The privately-held company’s investors consist of equity capital firms Sequoia Capital and Bunny Capital, both of which offered extra financing Thursday, The Times reported.
” This is a strong sign of self-confidence from financiers that will assist us continue to more serve our customers,” a representative for Robinhood, informed The Times.
On Thursday a lots Home Republicans sent out a letter to the head of the Securities and Exchange Commission calling on it to investigate possible collusion between Robinhood and any hedge funds. Join the discussion about this story” NOW ENJOY: What makes ‘Parasite’ so shocking is the twist that occurs in a 10- minute series