Cathie Wood’s Ark Invest buys $32.7 million of Robinhood stock

Cathie Wood’s Ark Invest has added over $15 million worth of Robinhood shares across two of its exchange-traded funds.

Summary

• Ark Invest bought $32.7 million worth of Robinhood shares after it fell to a multi-month low.
• The investment firm also added shares of crypto-facing companies, including Circle and Bitmine.

According to data compiled by Ark Invest Tracker, Ark Invest bought 363,317 Robinhood shares, worth approximately $32.7 million across three of its exchange-traded funds on Monday, Feb. 2.

Of the total acquisition, the Cathie Wood-led investment firm bought 235,077 Robinhood shares worth $21.1 million for its Ark Innovation ETF (ARKK), 64,282 shares for its Ark Next Generation Internet ETF (ARKW), and the rest for its ARK Fintech Innovation ETF (ARKF).

According to the firm’s disclosures, HOOD is currently the eighth-largest holding within its ARKK fund, with a weighting of 3.96%, worth around $262.4 million, as of Feb. 3. HOOD is also the sixth-largest and seventh-largest holding within its ARKW and ARKF funds, with a weighting of 4.4% and 4%, respectively.

The firm also purchased shares in crypto-facing companies such as Coreweave, Circle, Bitmine, and Bullish. 

At the same time, it added 150,814 shares of its own ETF, ARKB, for its ARKW and ARKF funds, worth around $3.9 million in total. ARKB closed down 6.94% on Feb. 2 after recording $78.5 million in total net outflows over the past week, according to data from Farside Investors.

Ark has increased its exposure to crypto-linked stocks in recent weeks as their valuations declined amid ongoing market volatility, a strategy it has long championed. 

Crypto stocks began this week with a relatively poor performance, with major crypto stocks printing red on Monday, according to data from Google Finance. At press time, Robinhood (HOOD) is down 9.62% after hitting a low of $88.67. Meanwhile, BitMine (BMNR), Circle (CRCL), and Bullish (BLSH) have fallen 9.16%, 8%, and 4.47%, respectively.

Robinhood shares fell nearly 10% on Monday | Source: Google Finance

The crypto stock slump has come alongside a challenging period for cryptocurrency prices this year, with Bitcoin (BTC) falling to a nine-month low on Feb. 2.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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