Cathie Wood’s ARK Takes $ 80 Million in Robinhood Stock After Crypto Prices Drop

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ARK Invest, the innovative technology-focused investment management firm led by Cathie Wood, took advantage of lower prices Wednesday to buy nearly $ 80 million of Robinhood shares.

According to daily trade data, Wood’s ARK bought a total of 2.24 million shares of Robinhood in three of Ark’s ETFs, with the majority of the shares going to the flagship ARK Innovation ETF. Robinhood now represents 1.33% of ETF Innovation.

On October 27, the trading platform reported a 78% drop in crypto revenue – from $ 233 million in the second quarter to $ 51 million in the third quarter – which caused the share price to fall. below its IPO price of $ 38 in July.

The stock has lost more than -11% since the start of the week, going from $ 39.85 on Monday, October 25, to $ 35.47 at the close of the market on Thursday, October 28.

In the wake of the earnings report, analysts at JPMorgan, Goldman Sachs, Piper Sandler, Barclays and Deutsche Bank significantly lowered their price targets.

Earlier in the week, Ark sold a total of 57,106 Tesla shares, worth $ 59 million, when the electric car maker broke through the value of $ 1,000 billion.

Ark also bought the decline with $ 60 million in Twitter shares on Wednesday after the social media company revealed diminished user growth in its earnings report, causing the share price to depreciate closely. by 11%.

Related: Robinhood Shares Rise To 10% After Crypto Revenue Dips Three-quarters

Wood still has reason to believe in Robinhood’s progress in crypto, as over a million people are on the app’s crypto wallet waitlist, though this is the only way to get crypto out. of the platform.

In early October, the trading app also introduced a 24/7 hotline to improve customer service wait times and help users invest in crypto.

Although Wood made the purchase of the first Bitcoin futures ETF, she still remains bullish on crypto. Ark Invest partnered with 21 Shares to deposit its own Bitcoin ETF in June.

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