Robinhood raises one other $2.four billion as dealer app offers with retail buying and selling frenzy
As it sits amid the recent extreme bouts of market volatility, discount online brokerage Robinhood has been able to raise another $2.4 billion from investors, the company said Monday.
That brings to $3.4 billion that the firm has been able to raise since last Thursday, a total that exceeds the amount it has raised in its entire history.
“This funding is a strong sign of confidence from investors and will help us build for the future and continue to serve people through the exponential growth we’ve seen this year,” the company said in a statement.
“We’re witnessing a movement of everyday people taking control of their own financial futures, many investing for the first time through Robinhood. With this funding, we’ll build and enhance our products that give more people access to the financial system,” Robinhood added.
The firm said it will use the new funding to expand its programs on financial literacy.
Robinhood has been in the center of the storm around a move by retail investors over the past week to squeeze hedge funds that had bet big against stocks including GameStop and AMC Entertainment.
As shares in the companies surged, Robinhood placed extreme limits on how much their customers, mainly younger and small-dollar investors, could buy. The company narrowed that list Monday from about 50 to eight.
Investors that had met up online, in particular on Reddit’s WallStreetBets forum, snapped up shares of the company, forcing some institutional firms into losses. The moves set off a vicious round of volatility on Wall Street that saw the Dow industrials lose close to 3%.