Robinhood
- Robinhood, the popular commission-free trading app, maxed out its entire $200 million credit line this month as markets swung violently, Bloomberg reported Tuesday, citing sources familiar with the matter.
- The move to draw the full credit line came during two weeks of volatile market movement where Robinhood’s trading platform suffered three separate outages.
- Robinhood told Business Insider that the decision to draw on the credit line was not related to those outages.
- Read more on Business Insider.
Robinhood, the popular commission-free stock-trading app, maxed out its entire $200 million credit line last month amid market turmoil, Bloomberg reported Tuesday.
The company drew its entire $200 million credit facility from Barclays, Citigroup, and JPMorgan Chase during the week of Feb. 24, found Bloomberg, which cited sources familiar with the matter.
Robinhood’s move came during a volatile period for markets, and preceded a particularly choppy stretch over the last two weeks. Following its decision to max out the credit line, the company experienced three separate major outages.
The company strongly denies its credit-facility actions were linked to those instances, and says it’s already returned the $200 million to those financial institutions.
“Any assertion that a draw on our credit line was related to an outage is entirely false,” a Robinhood spokesperson told Business Insider. The decision to borrow “predated and was entirely unrelated to any outage on our platform,” they added.
Robinhood “determined it was prudent to draw on our credit line during the week of February 24 in light of market volatility,” the spokesperson said. “It is not unusual for companies to take these precautionary measures amid current market conditions.”
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