Robinhood plans to raise $2 billion through a private offering of convertible senior notes due 2029, giving the trading platform new capital while its stock trades near recent highs. The conv
Robinhood plans to raise $2 billion through a private offering of convertible senior notes due 2029, giving the trading platform new capital while its stock trades near recent highs.
The convertible senior notes offering will be sold to qualified institutional buyers under Rule 144A. Initial purchasers will also receive an option to buy up to another $200 million of notes, which could lift the total raise to $2.2 billion if fully exercised.
The notes will mature on October 1, 2029, unless converted, redeemed or repurchased earlier. They will be senior unsecured obligations of Robinhood, with the interest rate, initial conversion rate and other terms still to be set at pricing.
Robinhood shares recently traded near $108.15, giving the company a market value near $99 billion. The stock had already rallied sharply before the debt announcement, leaving traders focused on whether the capital raise protects growth plans or adds dilution risk after a strong move in HOOD.
Robinhood plans to use about $300 million of the offering proceeds to repurchase Class A common stock. The final buyback amount may be higher or lower than that figure, and the company plans to continue repurchases under its existing stock buyback program after the offering.
A portion of the proceeds will fund capped call transactions designed to reduce potential dilution from note conversions. Robinhood said the capped calls are intended to offset dilution until at least a targeted 125% premium to the stock’s last reported sale price on the pricing date.
That structure gives the offering a mixed market read. Convertible notes can create dilution if the stock rises enough for conversion economics to become attractive, but capped calls can reduce the effect up to a defined ceiling. The buyback component can also offset some share pressure, while the remaining proceeds give Robinhood more flexibility for organic growth, investments, acquisitions and capital expenditures.
The company also warned that capped-call hedging activity may affect the stock and note prices around pricing and later conversion periods. Option counterparties may buy shares, enter derivatives or unwind hedges as part of the transaction, adding a technical trading layer around HOOD while the deal is marketed.
The raise comes alongside strong June activity across Robinhood’s core trading products. From June 1 through June 18, Robinhood recorded about $269 billion in equity notional trading volume, 217 million options contracts, $12 billion in crypto notional volume and 3.1 billion event contracts.
Crypto volume included about $5 billion from the Robinhood app and about $7 billion from Bitstamp, which has become a larger part of Robinhood’s international crypto strategy. The Bitstamp integration has already expanded Robinhood’s regulated footprint, including a recent BVI SIBA licence for Bitstamp by Robinhood.
Event-contract activity also keeps Robinhood inside the fast-growing prediction-market race. The company has been building around trading, crypto, event contracts and agentic finance, including plans for AI agent trading across crypto and prediction markets. Traditional brokerages are moving in the same direction, with Charles Schwab recently joining the prediction-market race with Cboe-linked contracts.
The offering is still subject to market conditions and may not close on the proposed terms. The next update will come when Robinhood prices the notes, setting the coupon, conversion rate, conversion premium and final size of a debt raise that now sits against record trading activity, buyback demand and dilution risk.
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