Brokerage app Robinhood announced today that it will begin offering to buy back GameStop stock from its users through its new trade-in program.
The statement follows recent events that have seen GameStop shares soar well beyond expected rates, jumping over 70% during early Friday trading alone. On Thursday, Robinhood blocked the ability for individual investors to purchase any additional GameStop stock, subsequently driving the price down to the benefit of large hedge funds. After facing backlash however, Robinhood later re-opened the stock to “limited buys” – the limit being 1.
In lieu of lifting trading restrictions, Robinhood stated that the ability to “trade-in” any GameStop stock would be available to all accounts. Individuals that trade-in their stock will receive 5% cash back of the price the shares were originally purchased at. Those who opt to accept GameStop store credit instead of cash will receive a slightly higher rate. The credit can be used at any in-store GameStop location on a variety of merchandise including the latest video game titles and Funko Pops.
“We have implemented this new change in order to protect the firm and our customers,” stated Robinhood CEO Vlad Tenev. “I think our users will find that the new trade-in program offers a fair exchange comparable with typical market rates.”
Robinhood later followed the announcement by revealing their new Robinhood PowerUp Rewards Program where the wealthier you are, the less restrictive your trading becomes. Members within the program who reach the $1 billion mark will automatically unlock access to the unlimited trading tier.