The increases in the gamestop have caused Robinhood to raise $ 1 billion – global markets

The GameStop (GME) affair not only brought the Robinhood app back into the spotlight, it put it in a cash problem. The reason: the increased trading in the company’s shares forced Robinhood to pay quite a bit of money to traders on the platform, which put the company in a suffocation of credit and cash.

To deal with this, the company was forced to receive close to $ 600 million in oxygen from U.S. banks. But that was not enough. Capital to get funding. And he received after last year the company raised $ 1.3 billion from private investors at a value of $ 12 billion.

That billion dollars did not come for free. Sequoia and Rebit will receive another percentage in the company at a discount to the issue price, as soon as the company becomes public – which is expected to happen later this year. Robinhood is the first and leading platform in the field of stock trading at a 0% commission. Following the affair, the company’s app ranks first in Apple’s APP Store (AAPL).

Last week Robinhood restricted trading on the platform in GameStop shares, while Wall Street traders were able to continue trading on it. This raised allegations against the company that it did one hand with the Wall Street giants against the users and 2 class action lawsuits were filed against the company as a result.

As mentioned, last week hundreds of thousands of members of the Wall Street Bets investor group on the social network Reddit decided to buy a number of stocks that had big shorts on them, including GME, the AMC cinema chain and Blackberry. What happened is a short squeeze that resulted in $ 20 billion in losses last week alone for hedge funds betting against the stock price.