Cathie Wooden’s ARK Make investments Buys Meme Inventory Robinhood Amid Shib, Doge Rally

ARK Make investments, the funding agency led by Cathie Wooden, moved to buy a complete of two,240,680 shares of Robinhood on Wednesday, value as a lot as $79.4 million.

Information disclosed by ARK Make investments exhibits that the acquisition was unfold out throughout the agency’s three actively managed exchange-traded funds (ETFs), with ARK Innovation ETF (ARKK) being the most important recipient (1,728,431 shares).

An additional 320,211 Robinhood shares have been added to the ARK Subsequent Technology Web ETF (ARKW), whereas the ARK Fintech Innovation ETF noticed 192,038 shares added to its portfolio.

Greater than 1.7 million shares of Robinhood buying and selling app have been added to the ARK Innovation ETF (ARKK) on Wednesday. Supply: ARK Invest.

ARK Make investments additionally bought Robinhood inventory on Tuesday, with 575,942 and 50,053 shares added to ARKK and ARKF, correspondingly.

Robinhood inventory falls beneath IPO value

The hefty buy got here as ARK Make investments moved to capitalize on Robinhood’s Q3 earnings report on Tuesday, during which the Menlo Park-based firm revealed that its crypto income fell to $51 million in Q3 2021—a 78% decline from the $233 million recorded within the second quarter.

Following the discharge of the report, the buying and selling app’s inventory fell by greater than 7% in after-hours buying and selling on Tuesday, earlier than one other decline of 10.4% on Wednesday, which noticed the worth of 1 share plummet to $35.44—a big dive beneath July’s IPO value of $38.

Nonetheless, as ARK’s newest buy suggests, buyers proceed to pin their hopes on Robinhood’s long-term success.

In keeping with Robinhood, the agency’s bleak monetary outcomes have been partly pushed by slumping demand for Dogecoin (DOGE), the meme coin which helped drive the app’s report sign-ups within the first half of the 12 months.

The corporate can also be being pressed so as to add extra cash to its zero-fee buying and selling app as a petition to checklist Shiba Inu (SHIBA) has already garnered over 380,000 signatures.

The Ethereum-based meme coin surged by 34.9% during the last day to hit a brand new all-time excessive of $0.00008616 earlier on Thursday, briefly flipping Dogecoin to develop into the ninth largest cryptocurrency by market cap.

Dogecoin, nevertheless, has seen its personal rally on Thursday morning because the canine coin soared by 30% to push again SHIBA to the tenth place within the rankings, in line with CoinGecko.

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