Robinhood CEO jumps on Clubhouse and gets grilled by Elon Musk. Was asked for $3Bil and didn’t have it

Posted by Jason Cartwright
on
February 1, 2021

Clubhouse is a new iPhone-only, audio-only social platform and tonight they had their most important call yet. After a Q&A with the community, Elon brought on the CEO of Robinhood, Vladimir Tenev.

While everyone was expecting a fairly timid conversation, Musk took the reins and grilled Tenev over the recent scandal that seen Robinhood users prevented from buying $GME $AMC and other stocks.

There were some really important details revealed during the interview. Tenev said they were asked for $3Billion in collateral from the clearninghouse. This is a significant issue, given the company did not have those funds. According to Crunchbase, Robinhood has raised a total of $3.2Bil.

If Robinhood was unable to find a way to fund the amount asked, they would be unable to trade and therefore out of business, potentially impacting as many as 13 million retail investors.

We now know the company raised $1 billion in equity to solve the issue, but not after talking down the figure owed from $3billion, to $700 million. The money was raised and tomorrow when the markets open, they will be relaxing the restrictions for stock