Robinhood has raised an additional $2.4 billion from shareholders following an initial $1 billion fundraising round in order to stabilize the firm amidst a trading frenzy surrounding GameStop.
Since last Thursday the company has raised more than $3.4 billion from shareholders, which is more than the company has raised since its start over eight years ago, The Wall Street Journal reported.
Fundraisers will be able to purchase Robinhood shares at a discount in the future as part of the fundraising measure. The much needed cash will allow Robinhood to cover collateral requirements and support thousands of new accounts opened by new users since last Thursday.
Following the GameStop trading frenzy, Robinhood placed restrictions on a series of stock purchases in order to keep collateral requirements at $700 million. The $3.4 billion is crucial in lifting trading restrictions moving forward.
As of Monday afternoon the number of restrictions on stocks has been lowered to 8, down from 50 last week. GameStop trading restrictions currently remain in place at this time.
Some have suggested Robinhood has received outside pressure from hedge funds and the Depository Trust & Clearing Corporation (DTCC). Robinhood Chief Executive Vlad Tenev denied this being the case, saying “I don’t have any reason to believe that, then you’re getting into conspiracy theories.”
Although popular stocks continue to be restricted by the Robinhood platform, it has continued to explode in popularity as the app has been downloaded more than 600,000 times since Friday, the Wall Street Journal reported.