Robinhood, the online broker at the centre of the boom in day trading, has raised $2.4bn in its second capital infusion in a week to shore up finances strained by turbulent trading.
The brokerage was hit by a surge in trading last week as retail investors bet against short sellers, driving up the price of previously little loved companies such as Gamestop and AMC, the struggling cinema chain.
The company’s latest round of convertible debt financing — which allows investors to swap their debt for equity — comes as Robinhood faced sharp increases in demands for deposits at clearing houses where trades in stocks and options are processed.