Robinhood, a discount online broker, announced Monday that it has raised an additional $ 2.4 billion from investors in the face of extreme market volatility.
The $ 3.4 billion mobilized since Thursday exceeds the total amount it has raised since its inception in 2013.
“This funding is a strong sign of investor confidence and will help us build for the future and continue to serve people through the exponential growth we’ve seen this year,” the company said.
“We are witnessing a movement of everyday people taking control of their own financial futures. Many are investing for the first time through Robinhood.”
She said she will use the new funds to expand her financial literacy programs.
“With this funding, we will develop and improve our products that enable more people to access the financial system,” said the company’s statement.
Robinhood was at the center of the storm last week for a move by retail investors that has put pressure on hedge funds that bet heavily against stocks like GameStop and AMC Entertainment.
As the companies’ stocks rose, Robinhood severely restricted the purchase price of its customers, mostly younger and smaller investors. The company narrowed that list down from about 50 to eight on Monday.
Investors who met online, particularly on Reddit’s WallStreetBets forum, snapped up shares in the companies, forcing some institutional companies to lose. The moves sparked a vicious round of volatility on Wall Street in which Dow industrials lost nearly 3%.
Robinhood and other brokers are required to meet certain deposit requirements from trade clearing houses. Due to the high volume of trading, Robinhood said last week it had to impose the restrictions as the deposit requirements set by the clearinghouse were much higher than expected.
“We had no choice in this case,” said Robinlad co-founder Vlad Tenev in a clubhouse discussion with Elon Musk late on Sunday in the Pacific. “We had to meet our regulatory capital requirements.”