Ark Invest Purchases Robinhood Shares Worth $80 Million Following Revenue Decline
Cathie Wood-owned Ark Investment has grabbed the opportunity to buy shares belonging to crypto and stock trading platform Robinhood. This comes on the heels of a revenue dip announcement by Robinhood. The shares purchased by Ark Investment are valued at $80 million.
Ark Invest purchased at discount a total of 2.82 million shares across three of its exchange-traded fund (ETF), with most of the shares claimed by Ark’s first fund, the Innovation ETF. Currently, Ark’s Innovation ETF holds 1.33% of Robinhood’s shares.
Earlier this week, Robinhood reported a staggering 78% dip in its crypto revenue, recording only $51 million for Q3 compared to its Q2 crypto revenue of $233 million. The announcement affected the trading firm’s share price, bringing it below its IPO price of $38. Robinhood launched its IPO in late July. Additionally, Robinhood’s stock price has declined by over 11% since this week.
Meanwhile, Ark Invest shed off 57,106 Tesla shares valued at $59 billion after the EV firm blazed past a valuation of $1 trillion. The investment firm also bought $60 million worth of Twitter stock after the social media giant announced a declining user growth in its Q3 earnings report, instigating an almost 11% decline in the stock price.
Ark Invest CEO and Bitcoin proponent Cathie Wood is bullish on Robinhood despite its poor revenue outcome for Q3. While no reason was attributed for the trading platform’s crypto revenue dip, Robinhood became unpopular among crypto traders following several complaints of system shutdown on its platform earlier this year.
However, in recent times, the trading platform is making attempts to redeem its image in light of an upcoming crypto wallet launch, which will allow users to initiate withdrawal requests for their assets- a feature unavailable on the platform to date. More than 1 million people have joined the waitlist for the wallet. Robinhood also revamped its customer service, providing a round-the-clock support line for users.
