Cathie Wood’s ARK dumps $31M in Robinhood stock, stacks Roblox

ARK Invest, the investment management firm founded by veteran investor Cathie Wood, started dumping large amounts of stock of the cryptocurrency-friendly broker-dealer Robinhood (HOOD).

On March 25, ARK dumped 1.6 million Robinhood shares from its three funds, according to a trade notification seen by Cointelegraph.

The amount is worth $31.5 million, based on HOOD’s closing price of $19.08 on Monday, according to data from TradingView.

The most significant portion — or 1,247,181 shares — was offloaded from the ARK Innovation ETF (ARKK), worth about $24 million. ARK also offloaded 275,933 and 128,137 HOOD shares from the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF), respectively.

ARK’s latest Robinhood sale is the largest one since the company started actively stacking HOOD stock last year. The sales came amid Robinhood seeing significant success, with its price surging 36% over the past 30 days.

The firm was selling smaller portions of Robinhood shares previously, with the majority of such sales being forced by compliance with Rule 12d3-1. The rule prohibits funds from acquiring more than 5% of the value of its total assets in securities.

After dumping $24 million in Robinhood shares, ARK’s ARKK holds HOOD as its eighth-largest portfolio asset, accounting for 4.3% of its entire $8.2 billion assets under management.

The top three assets are Coinbase (COIN), which accounts for 10.6% as of March 26, Tesla (TSLA) and Roku (ROKU), which make up 8.4% and 7.5%, respectively.

ARKK’s top nine assets by value as of March 26, 2024. Source: ARK Invest

While dumping Robinhood, ARK has continued buying more shares of the online game platform Roblox (RBLX). On March 25, ARK acquired 740,115 Roblox shares for its three funds, including ARKK, ARKW and ARKF. The amount is worth $27 million at the closing price on Monday, according to TradingView.

In addition to selling Robinhood, ARK continued to offload Coinbase shares, dumping 4,291 COIN on Monday. The sale is worth roughly $21 million as of Tuesday morning, according to TradingView data.

Founded in 2013, Robinhood is a crypto-friendly stock trading application that allows users to trade cryptocurrencies like Bitcoin (BTC $70,920) and Ether (ETH $3,649) in addition to stocks, exchange-traded funds (ETFs), options and other assets.

On March 20, 2024, Robinhood launched the Android version of its self-custodial wallet, the Robinhood Wallet app.