Ark Invest, Led by Cathie Wood, Acquires $21M Robinhood Shares

Key Points

• Ark Invest has invested $21 million in Robinhood Markets (NASDAQ: HOOD) stock.
• The stocks were distributed across Ark Invest’s two Exchange Traded Funds (ETFs).

Ark Invest, a leading asset management firm, has made a significant investment in Robinhood Markets. The firm has put $21 million into the acquisition of Robinhood’s stock, marking another routine rebalancing of its financial portfolio.

The stocks were distributed across two of Ark Invest’s Exchange Traded Funds (ETFs).

Details of the Acquisition

In a disclosure made on October 22, Ark Invest, led by Cathie Wood, confirmed the acquisition of $21.3 million worth of Robinhood Markets shares. These shares were divided between Ark Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW).

Specifically, 131,049 Robinhood shares went to ARKK, and 36,440 shares were acquired by ARKW. This brings the total to 167,489 Robinhood shares.

At the time of the disclosure, approximately 19% of both Ark Invest’s ETFs were made up of Robinhood shares. On October 22, HOOD closed markets at $127.22 after it fell by 3.5%.

This latest purchase is just one of the many accumulations of HOOD that the company has embarked on this year alone.

Other Investments and Offloads

Besides Robinhood shares, the Cathie Wood-led firm has also gained exposure to shares of Bullish, Coinbase , and ETH treasury firm BitMine. However, these purchases are not without some offloads, depending on the weightings of the said shares at the time.

In September, Ark Invest cut down on Robinhood stocks and acquired BitMine stock instead. It offloaded more than 40,000 Robinhood shares, valued at approximately $5.1 million, to buy $4.3 million worth of BitMine stock.

This sale caught the market by surprise, coming just a few days after S&P Global confirmed that Robinhood would join the S&P 500 index.

Robinhood’s Expansion Efforts

Meanwhile, Robinhood has been expanding its brokerage and trading operations across several jurisdictions.

The company has been strategic with its moves this year, including partnerships with top companies and projects. Robinhood acquired WonderFi, a Toronto-based platform, for approximately $180 million in May.

With WonderFi, Robinhood is working towards expanding 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.