People familiar with the matter revealed that Robinhood, the US online trading platform used by young retail investors to fight Wall Street hedge funds, has negotiated with the bank to raise 1 billion.USDDebt matters to facilitate its continued fulfillment of a large number of empty orders.
Robinhood announced on Monday that it has received 3.4 billion from investors since January 29USDLoans, howeverUSDIt’s another one. This reflects the GameStop (GME-US) The enthusiasm puts financial pressure on Robinhood, prompting it to restrict trading.
Robinhood needs funds to support transactions conducted by its customers because its clearing house will require more guarantees due to increased volatility. Robinhood CEO Vlad Tenev said on Sunday that the Robinhood trading platform app restricted certain transactions because the clearing house required 3 billionUSDSecurity deposit.
One of the anonymous sources said that Robinhood has exhausted all revolving debts after crazy transactions last week, so it has negotiated with the bank, hoping to expand the credit line or arrange a new line of credit. Robinhood declined a request for comment.
Robinhood is loved by young retail investors because of its easy-to-use interface. The WallStreetBets board of the Reddit forum called on the masses to buy stocks that were sold short by hedge funds. Robinhood trading forced this wave of short squeeze frenzy.
Some users criticized Robinhood’s decision to restrict order placement, and investors filed a class action lawsuit. The dilemma caused many people to question whether its IPO plan before April could still be implemented as scheduled.
Flowserve News reported on Monday that Robinhood has shelved its IPO plan to focus on the right market turmoil. Robinhood Markets was originally scheduled to IPO this year, and its valuation is estimated to exceed 20 billionUSD。
Robinhood said on Monday that its latest equity financing was led by Ribbit Capital, with existing investors including ICONIQ Capital, Andreessen Horowitz, Sequoia, Index Ventures and NEA participating in the financing.
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