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Robinhood Supports GameStop Trading Surge

The online brokerage had raised a total of $3.4 billion in less than a week.

Robinhood, an online brokerage service that has seen a surge in GameStop – and AMC- related activity in the past week, has raised another fund of $2.4 billion from investors, the Wall Street Journal showed.

The cash infusion follows after last week’s $1 billion raise and then increased reliance on Robinhood’s existing credit lines; the money will collateralize the uptick in the trading activity and help meet the increased pressure from Robinhood’s clearinghouses.

The journal highlighted that the $3.4 billion is more than what the company has raised in total up until now.

Robinhood saw unprecedented demand last week, as an army of retail traders on Reddit’s r/wallstreetbets message board banded together to pump the price of stocks like GameStop, AMC, Nokia, and Blackberry. As things start to turn back, downloads of the Robinhood app shot up: only last Friday, and as it has been reported, there were “about 1 million” downloads.

Robinhood restricted users’ capability to buy into individual stocks last week, introducing the limits for how many new shares every trader can buy, before slightly easing the requirements; the number of restricted stocks is now down from 50 to 8; however, the investments in GameStop are still capped at just one share.

Many customers have already sued the app, claiming about market manipulation.

The “meme coin” Dogecoin, which has seen a considerable price increase last week as several disgruntled traders have turned their attention to crypto – is still listed on Robinhood. However, instant deposits are now unavailable for all cryptocurrencies.

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