The capital was in addition to the $1 billion it raised last week amid a trading frenzy over the video-game retailer GameStop and other stocks.<\/b>
\nRobinhood raised an additional $2.4 billion over the weekend, the trading app said on Monday, adding to the $1 billion it had to seek from its investors earlier last week. \u201cThis round of funding will help us scale to meet the incredible growth we\u2019ve seen and demand for our platform,\u201d Robinhood\u2019s chief financial officer, Jason Warnick, said in a post on the company\u2019s website. The infusion was led by Ribbit Capital and included other existing investors like Sequoia Capital, Robinhood said. The company called it \u201ca strong sign of confidence.\u201d The online trading firm has been at the center of a trading frenzy over the video-game retailer GameStop and other stocks, which have risen substantially over the past week. Driven by a surge of interest among amateur investors \u2014 many of whom congregate on the Wall Street Bets forum on Reddit \u2014 GameStop\u2019s shares soared 1,600 percent in January. The sudden wave of buying of shares and options contracts has squeezed hedge funds that had bet on the stocks to fall. But it has also created complications for Robinhood. As its users embraced highly volatile stocks, the trading platform was forced to substantially increase the amount of money it deposits with the clearinghouse that processes its trades. On Thursday, an arm of the Depository Trust and Clearing Corporation, Wall Street\u2019s main clearinghouse for stock trades, demanded $3 billion in additional collateral from Robinhood, to cover risky trades by its customers, according to Vlad Tenev, the trading app\u2019s chief executive. That was \u201can order of magnitude\u201d more than was usually required, Mr. Tenev said in a conversation with the Tesla chief executive Elon Musk on the social network Clubhouse. That demand was later reduced to about $700 million. Even so, Robinhood said Thursday night it had raised $1 billion from existing investors. The firm also tapped a credit line of at least $500 million. \u201cThis was nerve-racking,\u201d Mr. Tenev said.<\/p>\n