The free trading app Robinhood is still caught in the middle of the GameStop Corp. (NYSE: GME) short-squeeze saga.
Last week was a volatile week in which Robinhood restricted its user from buying certain stocks. The action caught the attention of regulators and Congress. A bipartisan group of congressional members called for an immediate investigation.
The firm claimed the restrictions were a “risk-management decision.”
Since then Robinhood has been scrambling to defend its actions and raise more cash.
Last Thursday, Robinhood raised $1 billion from investors as a “protective measure,” CEO Vlad Tenev told CNBC. “There was no liquidity problem,” Tenev stated.
In a Friday blog post, Robinhood changed its story and said the reason for the buying restrictions was due to increased deposit requirements at its clearinghouse, which it was unable to meet at the time.
Monday, in a blog post, the company announced it raised an additional $2.4 billion, bringing its total to $3.4 billion in the last four days.
On Monday, flush with new cash, Robinhood increased the number of shares each user could buy. The GME limit was raised from one share per user to four.
Here’s a list of all the current restrictions Robinhood is imposing:
Stock Symbol Share Limit
AMC 75
BB 700
EXPR 200
GME 4
GNUS 5,000
KOSS 25
NAKD 6,500
NOK 2,000
Users who are already above the limit will be allowed to keep those shares but will be barred from buying any more.
Users can sell as much as they want at any time without restriction.
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