02.01.21 - Robinhood raised another $2.4 billion from shareholders, days after investors agreed to pump $1 billion into the online brokerage to help it ride-out a trading frenzy in popular stocks.
The huge infusion—$3.4 billion raised since last Thursday—is more than the company has raised in total up until that point, giving Robinhood a war chest to cover a surge in collateral requirements stemming from the trading boom. It should also allow the company to support the hundreds of thousands of new accounts users opened since Thursday and to remove many of the trading restrictions that angered customers of the popular brokerage.
The fundraising deal was structured as a note that conveys the option to buy additional shares at a discount later.
Source: Wall Street Journal