Ark Invest sold over $7.5M in Robinhood shares on June 10, 2024, causing a pre-market drop in HOOD stock despite Robinhood’s acquisition of Bitstamp.
On Monday, June 10, 2024, Ark Invest, which is under the leadership of Cathie Wood, executed substantial transactions, including a substantial sell-off of Robinhood Markets Inc. (HOOD).
Despite Bitstamp’s recent acquisition of Robinhood, the company has maintained its divestment of Robinhood shares. Additionally, the HOOD stock experienced a significant decline in pre-market trading today as a result of Ark Invest’s disposal of more than $7.5 million in shares.
Ark offloaded a total of 323,801 shares of Robinhood, which were distributed across three of its funds: Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF), according to the most recent update. The sale proceeds of this strategic divestment were approximately $7.58 million.
Additionally, this sale was the largest dollar-value transaction of the day for Ark. This action is part of Ark Invest’s ongoing rebalancing of its portfolios, which is currently concentrated on high-growth sectors like biotechnology and technology.
Ark simultaneously increased its investments in numerous biotech and tech companies, at the same time as it decreased its exposure to Robinhood. This is indicative of its optimistic assessment of the long-term potential of these industries.
Moreover, the most recent decline suggests that Ark Invest has taken advantage of the increase in the price of HOOD stock on Monday.
Ark Invest, which is owned by Cathie Wood, had previously divested a substantial portion of its ownership in Coinbase Global, Inc. (COIN). Nevertheless, there have been no substantial selloffs in recent times, and the COIN stock offloading frenzy has ceased.
Conversely, the organization divested 66,200 shares of HOOD on Friday, June 7, for a total of $1.46 million.
Robinhood’s stock plummeted by 2.13% to $22.92 in the pre-market session on Tuesday, June 11, following Ark Invest’s recent selloff. Nevertheless, the HOOD stock closed at $23.42 on Monday, a significant increase of 5.59%.
Additionally, Robinhood’s stock has experienced a significant increase in value since Bitstamp’s acquisition.
Since last week, the stock price of HOOD has increased by an exorbitant 11.42%. Bitstamp was acquired by the cryptocurrency platform for an unexpected $200 million. Additionally, this action is perceived by industry professionals as a strategic development for the organization, with substantial long-term potential.
Nevertheless, Ark Invest‘s ongoing divestment indicates otherwise. The company appears to be betting against the HOOD stock in the long term, as it is perceived to be leveraging the short-term gains in the share price. Therefore, the organization managed by Cathie Wood may observe an additional dump.
