Robinhood Markets’ investors added $2.4 billion on Monday, raising cash infusions to the online brokerage firm to $3.4 billion, according to Bloomberg. The firm aims to use the fresh funds as collateral at the industry’s central clearinghouse, the Depository Trust & Clearing Corporation.
- The cash infusions at Robinhood come when the company is facing outraged customers, increased Washington scrutiny, and questions about its plans for an initial public offering.
- Robinhood Chief Financial Officer Jason Warnick expects the round of funding to help the company scale up to meet its platform’s growth and demand.
- Robinhood also continued to ease the trading restrictions it imposed last week following the Reddit-fueled trading mania on heavily shorted stocks.
- On Monday, Robinhood eased trading restrictions, allowing customers to trade as much as twenty shares of GameStop, up from a previous limit of four.
- The troubles facing Robinhood could delay its IPO scheduled for as early as May.
- Robinhood trading partners have raised concerns over its stability, and last week, called the intervention of Depository Trust & Clearing Corporation (DTCC).
Robinhood added more than 600,000 new users on Friday compared to about 140,000 on its best day during the pandemic-induced volatility in March.
