Online discount brokerage Robinhood said on Monday that it raised another $ 2.4 billion from investors amid extreme attacks of market volatility.
The $ 3.4 billion it has mobilized since Thursday exceeds the total amount it has raised since its founding in 2013.
“This financing 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 saw this year,” said the company.
“We are witnessing a movement of ordinary people taking control of their own financial futures, many investing for the first time through Robinhood.”
He said he will use the new funding to expand his financial education programs.
“With this funding, we will build and improve our products that will give more people access to the financial system,” said the company’s statement.
Robinhood has been at the center of the storm over a move by retail investors last week that squeezed high-stakes hedge funds against stocks like GameStop and AMC Entertainment.
As company stocks soared, Robinhood imposed extreme limits on how much his customers, especially younger and smaller investors, could buy. The company reduced that list on Monday from about 50 to eight.
Investors who met online, particularly on Reddit’s WallStreetBets forum, snapped up shares in companies, forcing some institutional companies to lose. The moves triggered a vicious round of volatility on Wall Street that saw Dow industrialists lose about 3%.
Robinhood and other brokers are required to comply with certain deposit requirements for clearing houses of commerce. Because of the high volume of trading, Robinhood said last week that he had to impose the restrictions because the deposit requirements set by his clearing house were much higher than expected.
“We had no choice in this case,” said Robinhood co-founder Vlad Tenev, in a discussion at the Clubhouse with Elon Musk late Sunday, Pacific Time. “We had to meet our regulatory capital requirements.”