Ark Invest Acquires $21M Robinhood Stock, Cathie Wood Leads the Charge

Key Points

• Ark Invest has invested $21 million into Robinhood Markets stock.
• The stocks were spread across two of Ark Invest’s Exchange Traded Funds (ETFs).

Ark Invest, a leading asset management firm, has purchased Robinhood Markets stock worth $21 million. This move is part of the firm’s regular financial portfolio rebalancing. The stocks were divided between two of Ark Invest’s Exchange Traded Funds (ETFs).

Details of the Robinhood Stock Acquisition

Ark Invest, led by Cathie Wood, disclosed on Oct. 22 that it had bought $21.3 million worth of Robinhood Markets shares. These were acquired through Ark Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW). Specifically, 131,049 Robinhood shares were allocated to ARKK, while 36,440 shares were obtained by ARKW. This brings the total to 167,489 Robinhood shares.

At the disclosure time, Robinhood shares made up approximately 19% of both Ark Invest’s ETFs. On Oct. 22, HOOD closed markets at $127.22 after a 3.5% drop. This recent acquisition follows several accumulations of HOOD that the company has undertaken this year.

In addition to Robinhood shares, the firm has also gained exposure to shares of Bullish, Coinbase, and ETH treasury firm BitMine. However, these purchases have also involved some offloads, depending on the weightings of the said shares at the time.

In September, Ark Invest reduced its Robinhood stocks and acquired BitMine stock instead. It sold more than 40,000 Robinhood shares, valued at approximately $5.1 million, to buy $4.3 million worth of BitMine stock. This sale surprised the market as it was just a few days after S&P Global confirmed that Robinhood would join the S&P 500 index.

Robinhood’s Strategic Moves in One Year

Meanwhile, Robinhood has been expanding its brokerage and trading operations across several jurisdictions. It has been strategic with its moves this year, including partnerships with top companies and projects. In May, Robinhood acquired WonderFi, a Toronto-based platform, for approximately $180 million.

With WonderFi, Robinhood is planning to expand its crypto offerings into Canada. In June, it also acquired BitStamp in a $200 million deal. Like many other firms, Robinhood recently added support for BNB trading on its platform.