Reuters was first to report that Robinhood, the U.S. online broker that has emerged as a gateway for amateur traders challenging Wall Street hedge funds, has held talks with banks about raising $1 billion in debt so it can continue to fulfil orders for heavily shorted stocks. The capital raised would be separate from the $3.4 billion in financing that Robinhood announced on Monday it had secured from its investors since Jan. 29. It reflects the financial pressure that last week’s Reddit-fuelled frenzy in shares such as GameStop Corp placed on the company, prompting it to restrict some trades.
Deals
Reuters first to report Robinhood explores raising more debt to fulfill Reddit-fueled order frenzy
01 February 2021, 7:46 pm 1 minute
Article Tags
Topics of Interest: Deals
Type: Reuters Best
Sectors: EquitiesFinancial ServicesRetail & Consumer Goods
Regions: Global
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Major Global Story