How the GameStop stonkathon helped Robinhood raise $3.4B last week – TechCrunch

Robinhood has shown To increase an impressive capacity Huge amount of capital In the last few weeks to ensure that it has the necessary funds Allow users to trade And, possibly, provide it with enough cash until it goes public. Raising $ 3.4 billion so quickly is an extraordinary achievement.

But how the company managed to make money with such attenuation to investors is a curiosity; What was robinhood about So Is it such a clear decision to give it a multi-billion dollar injection?

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We got its flow when we paid for Robinhood’s Q4 2020 Order Order (PFOF) data, which showed the discount trading service to be growing well above its Q3 results. Robinhood’s PFOF revenue growth was Slow down in sequential terms in the third quarter of 2020, But the last quarter was surrounded by near-term concerns that the Unicorn’s development days were behind it.

But then the company gave us some more, some charts which better explain to me why Robinhood was able to raise so much money so quickly.

Equity and option volumes go up

The reason Robinhood was able to raise a lot of cash very quickly, as the company’s PFOF revenue driver likely accelerated during the mess during the gamertop period, is somewhat apparent, as many were trading.

But thanks to a new chart of the company Posted on my own blog, We now know that Robinhood’s PFOF income potential was at an all-time high.

Here is the chart the company has published, which I have loosely marked with quarterly intervals. According to Robinhood, the Green Line “Robinhood Equities and Options Trading Volume Longer Horizon, Through Last Week:”