After purchasing a significant amount of HOOD stock last year, ARK Invest began selling off huge quantities of Robinhood stock for the first time.
Cathie Wood, an experienced investor, formed ARK Invest, an investment management company, which began selling off a significant portion of the shares of Robinhood, a broker-dealer that supports cryptocurrencies (HOOD).
1.6 million Robinhood shares were divested by ARK from its three funds on March 25, as per a transaction notification obtained by Cointelegraph.
Based on HOOD’s Monday closing price of $19.08, the sum is valued at $31.5 million, per TradingView data.
1,247,181 shares, or the largest part, were sold from the ARK Innovation ETF (ARKK), which is valued at approximately $24 million. Additionally, ARK sold off 275,933 and 128,137 shares of HOOD from the ARK Fintech Innovation ETF (ARKF) and ARK Next Generation Internet ETF (ARKW), respectively.
The biggest Robinhood sale that ARK has had since it began actively stacking HOOD stock last year is the one that happened recently. The sales coincided with Robinhood experiencing notable success, as seen by a 36% increase in price over the previous 30 days.
Previously, the company was selling smaller parts of Robinhood shares, most of which were required to be sold in order to comply with Rule 12d3-1. The regulation forbids funds from holding securities worth more than 5% of their entire asset value.
Following the sale of $24 million worth of Robinhood shares, ARK’s ARKK now owns 8.3% of the $8.2 billion in assets under management, making HOOD the eighth-largest portfolio asset.
As of March 26, the top three assets are Coinbase (COIN), which has a 10.6% share; Tesla (TSLA) and Roku (ROKU), with 8.4% and 7.5% shares, respectively.
ARK has continued to purchase further shares of the online gaming platform Roblox (RBLX) while discontinuing Robinhood. 740,115 Roblox shares were purchased by ARK on March 25 for its three funds, ARKK, ARKW, and ARKF. At Monday’s closing price, the sum was valued at $27 million, according to TradingView.
ARK dumped 4,291 COIN on Monday in addition to selling Robinhood and other Coinbase shares. Based on TradingView statistics as of Tuesday morning, the sale is valued at approximately $21 million.
