Robinhood Raises $1B, Taps Credit Lines to Allow GameStop Trades.
After blocking investors from buying stocks such as GameStop, AMC, American Airlines and more on Thursday, .
The brokerage app raised $1 billion from investors overnight to allow clients to keep trading the volatile stocks.
Robinhood also raised $500 million through credit lines.
By drawing on our credit lines, which we do all the time as part of normal day to day operations, we get more capital that we can deposit with the clearing houses and that will allow us to enable ideally more investing with fewer restrictions, Robinhood CEO Vlad Tenev, to CNBC.
Premarket shares of GameStop rose 80% in anticipation of Robinhood easing some restrictions Friday morning.
An update on the app reads, "You're now able to make limited buys of the securities that were temporarily position closing only."