ARK Invest, the investment management firm established by seasoned investor Cathie Wood, has initiated a significant divestment of its holdings in Robinhood (HOOD), the cryptocurrency-friendly broker-dealer. According to a trade notification, ARK sold off 1.6 million shares of Robinhood across three of its funds on March 25.
The transaction amounted to approximately $31.5 million based on Robinhood's closing price of $19.08 on Monday, as reported by TradingView. Notably, the largest portion of shares, totaling 1,247,181, was liquidated from the ARK Innovation ETF (ARKK), amounting to about $24 million. Additionally, ARK disposed of 275,933 shares from the ARK Next Generation Internet ETF (ARKW) and 128,137 shares from the ARK Fintech Innovation ETF (ARKF).
This divestment marks ARK's most significant sale of Robinhood stock since the firm began accumulating HOOD shares vigorously last year. The decision comes amidst Robinhood's notable success, with its stock price surging by 36% over the past 30 days. ARK had previously offloaded a smaller portion of Robinhood shares to comply with Rule 12d3-1, which restricts a fund from holding securities exceeding 5% of its total assets.
Following the recent sale, Robinhood remains a notable holding in ARK's ARKK fund, accounting for 4.3% of its $8.2 billion total assets under management. Meanwhile, ARK has redirected its investment focus towards online gaming platform Roblox (RBLX), acquiring 740,115 shares across its ARKK, ARKW, and ARKF funds for approximately $27 million on March 25.
In addition to reducing its stake in Robinhood, ARK has continued to divest from Coinbase (COIN), selling off 4,291 COIN shares valued at approximately $21 million on Monday. Founded in 2013, Robinhood is known for its cryptocurrency-friendly stock trading app, which enables users to trade a variety of assets including cryptocurrencies like Bitcoin and Ethereum. Moreover, the platform recently launched the Robinhood Wallet app for Android users, expanding its offerings to include a self-service wallet feature.
