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Robinhood has raised $ 2.4 billion in its second capital injection in a week as the online broker rushes to shore up finances which have been strained by a surge in trading on its platform.
The Menlo Park-based company said Monday, he had raised $ 3.4 billion in total, including $ 1 billion obtained Thursday last week.
The latest round of convertible debt financing – which allows investors to convert their debt into stocks – comes as Robinhood faces increasing deposit requirements at the clearing houses where its trades are settled.
Robinhood chief executive Vlad Tenev said on Sunday evening that his stock clearinghouse requested $ 3 billion in margin deposits on Thursday – a day marked by chaotic trading in popular stocks – before slashing demand to $ 700 million after limited trading of certain shares by the company. .
People briefed on the deal announced on Monday said it would help Robinhood keep trading in stocks like GameStop and AMC.
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