RobinHood Adds Capital and Users
Robinhood raised another $2.4 billion from shareholders yesterday, days after investors agreed to pump $1 billion into the online brokerage to help it ride out a trading frenzy. (Wall Street Journal)
The big infusion—the $3.4 billion brought in since last Thursday is more than the company had previously raised in the eight years since its launch—gives Robinhood a cushion to cover a surge in collateral requirements stemming from the trading boom. The cash should also allow the company to remove many of the trading restrictions that angered customers of the popular brokerage, people familiar with the matter said.
It wasn’t just an infusion of capital that Robinhood saw last week. A new estimate says that the private company’s app was downloaded more than 1 million times from Wednesday to Friday as the market was transfixed by a surge in retail trading of stocks like GameStop and AMC.
Robinhood’s best day last March, during a boom in trading at the start of Covid, was 140,000 downloads, Ryan writes. Robinhood has not revealed its latest customer count in months, after saying it had 13 million account-holders last May.
I guess the old saying is true. There is no such thing as bad publicity