Ark Invest, the investment management firm focused on innovative technology led by Cathie Wood, took advantage of a price dip on Wednesday to buy nearly $80 million worth of Robinhood stock.
Per daily trading data, Wood’s Ark purchased a total of 2.24 million shares of Robinhood across three of Ark’s ETF funds, with the majority of shares going to the flagship fund Ark Innovation ETF. Robinhood now accounts for 1.33% of the Innovation exchange-traded fund (ETF).
On Wednesday, the trading platform had declared a 78% decline in crypto revenue — from $233 million in Q2 to $51 million in Q3 — which drove the share price down below its July initial public offering price of $38.
The stock is down more than -11% since the start of the week, from $39.85 on Monday to $35.47 as of market close on Thursday.
Following the earnings report, analysts at JPMorgan, Goldman Sachs, Piper Sandler, Barclays and Deutsche Bank reduced their price targets significantly.
Earlier in the week, Ark sold a total of 57,106 shares of Tesla stock, worth $59 million, when the electric carmaker crossed the $1-trillion valuation.
Ark also bought the dip with $60 million in Twitter stock on Wednesday after the social media company revealed diminishing user growth in its earnings report, causing the stock price to depreciate by almost 11%.
Wood still has reasons to believe in Robinhood’s progress in crypto as more than 1 million people are on the waitlist for the app’s crypto wallet, albeit as that’s the only way to withdraw crypto from the platform.
In early October, the trading app also introduced a 24/7 support line to improve customer service wait times and help users with crypto investments.