After a turbulent week for the stock market and Prohibits the trading of certain speculative securities Consumer investment app Robinhood has raised new capital, including GameStop (GME) and AMC. The new funds are worth more than $ 1 billion, with the company telling TechCrunch that they were raised from its existing investor base.
new York Times Report that The company raised new equity capital after tapping its credit lines for $ 500 to $ 600 million; The company did not answer a TechCrunch question about its credit lines.
Reported drawdown match Reporting since yesterday Indicating that Robinhood has reached the nine-figure mark of capital to ensure that it has sufficient funds to meet regulatory minimums and other requirements related to the business activity of its users.
Individual retail investors, along with institutional capital, have hit small positions in some stocks in recent weeks, leading to a tug of war between fast investors and bearish stakes; The resulting tumor has led to increasing volumes for volatile stocks, causing Robinhood to need more capital to keep its gear running.
in Post Discussing yesterday its decision to prohibit trading on select securities, Robinhood wrote that “it has a number of financial requirements, including SEC net capital obligations and clearinghouse deposits,” adding that “some of these requirements are in the markets. Fluctuate depending on volatility and may suffice. ” Current environment
The unicorn consumer fintech company halted trading in shares such as GameStop which became the center of a trading storm yesterday, leading to frenzied accusations from provoked users that something was unpleasant. Later in the day Clearing house entity power trading for other consumer trading services Also halted service for the same set of stock.
Robinhood told users that it would allow trading to start in some stocks today, which were previously restricted.
It does not appear that the current trading scrap will be finished soon. Shares of GameStop, the most famous so-called “meme stock” in the current trading war, are down pre-market trading by less than 94% this morning, meaning many investors are set to continue their value in the hope of breaking. Small bets set by other investors.
One result of the current climate is a surge in demand for trading apps. Today, Robinhood ranks first on the US iOS App Store; Webl, a rival service is another; Reddit is a center third for most business gossip via r / WallStreetBets; Coinbase is the fourth in a popular crypto trading service line. Square’s Cash app, which allows for share purchases, is in seventh place, Fidelity’s iOS app comes in tenth place, and TD Ameritrade is in 16th place. Finally, E * Trade’s own app ranks 18th. This is a good performance for fintech, both startups and alike.
No one knows what comes next, how trades come into play, and if stock trading will continue to present interesting retail growth. However, it is clear that today is very silly.