Reuters first to report Robinhood explores raising more debt to fulfill Reddit-fueled order frenzy | Reuters News Agency
Deals

Reuters first to report Robinhood explores raising more debt to fulfill Reddit-fueled order frenzy

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.

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
FILE PHOTO: The welcome screen for the Robinhood App is displayed on a screen in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration/File Photo
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