CASHING IN

Robinhood Raises $1 Billion of Emergency Funding to Help it Ride Out GameStop Frenzy

The app infuriated customers earlier this week by halting buying for several stocks backed by Reddit group r/wallstreetbets, including GameStop.

Robinhood—the online trading app at the center of this week’s GameStop stock-buying frenzy—has reportedly raised $1 billion in emergency funding to help it get through this period of crazy market activity. On Wednesday, the app infuriated customers by halting buying for several stocks backed by Reddit group r/wallstreetbets, including GameStop. But, on Thursday, Robinhood said it will open up “limited buys” of those stocks, and it was was reported by The New York Times that it had secured $1 billion in emergency investment to help it ease the restrictions. In a blog, the company said it had been strained by the financial commitments that came with the extremely high volume of sales—so made the “tough decision” to temporarily block the Reddit-backed stocks. The unlikely alliance of Rep. Alexandria Ocasio-Cortez (D-NY) and Sen. Ted Cruz (R-TX) criticized Robinhood’s decision, calling it “unacceptable.”