Robin Hood, a popular trading software, has raised more than $1 billion from investors to maintain its operations


According to reports on the afternoon of January 29, Robin Hood, an online trading app, said on Thursday that it was raising more than $1 billion from its existing investors as the stock market continued to heat up and demand for funds soared.
As one of the largest online stockbrokers in the United States, Robin Hood is under a lot of pressure this week as retail investors rush into stocks such as Gamestop, which has seen huge trading volume. On Thursday, Robin Hood issued a statement that, in view of recent volatility, trading in AMC, GME and other stocks will be restricted, only positions will be closed, and margin requirements for some stocks will be raised. Yingtou securities, futu and other securities companies also announced similar measures. Public reports show that Robin Hood did this mainly to protect his own interests and avoid getting into trouble. After all, the US Securities Regulatory Commission has begun to focus on these stocks. Robin Hood has already faced at least two customer lawsuits over this. After hours on Thursday, Robin Hood said it would allow users Limited trading on Friday.
In order to maintain its operations, Robin Hood obtained US $500 million to US $600 million of credit lines from six banks to meet the higher margin or loan requirements of its central clearing agency for stock trading, namely the American Depository Trust and Clearing Corporation.
Robin Hood still needs to increase cash quickly to avoid further restrictions on client transactions, two people familiar with the matter said.
Five people familiar with the talks said Robin Hood had contacted a number of investors and had received the funds late on Thursday.
“This is a strong sign of investor confidence and they will help us continue to serve our customers,” Robin Hood spokesman Josh drobnyk said in an email