The online broker Robinhood, which hit the headlines because of the GameStop hype, is negotiating, according to insiders, over loans with a volume of one billion dollars. The company is talking to banks about expanding existing lines of credit or approving new ones, an insider said. How much Robinhood can secure was unclear. The company declined to comment. The trading platform, popular with small investors, had only raised a total of $ 3.4 billion from its investors in the past few days. Robinhood needs the money to adequately cover the recent flood of orders.
Robinhood had been heavily criticized in the past few days because it had restricted the purchase of shares in GameStop and other companies after the price increases triggered by small investors.
With the additional billions, the company wants to meet the demand that has apparently grown despite the criticism. The background to the turbulence was small investors who organized themselves mainly via the online platform Reddit and thus attacked the business model of large hedge funds. The amateur investors had bought en masse shares in GameStop – a company in which several hedge funds had bet on falling prices.
After GameStop, silver is now booming
A stock market battle developed between established Wall Street players and retail investors. Most recently, the drama caused a boom in the silver price. There were calls to buy silver in social networks – including on Reddit. However, there was also a warning that it could be a coordinated action by hedge funds.
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