Cathie Wood’s ARK Invest has increased its stake in Robinhood Markets, purchasing about $13 million worth of shares after the company was selected to play a role in a new government-backed savings initiative.
ARK’s Tuesday trade disclosures show the buying was spread across several funds. The ARK Innovation ETF (ARKK) led with 132,116 shares, followed by the ARK Next Generation Internet ETF (ARKW) with 33,607 shares, and the ARK Fintech Innovation ETF (ARKF) with 16,918 shares.
Robinhood tapped for Trump Accounts
The move comes after the US Department of the Treasury named Robinhood as the brokerage and initial trustee for “Trump Accounts,” a new tax-advantaged investment program for children. Under the initiative, eligible US citizens born between Jan. 1, 2025, and Dec. 31, 2028, would receive a $1,000 government contribution.
According to a Monday announcement, Bank of New York Mellon (BNY) will act as the financial agent, managing the initial accounts and helping develop the Trump Accounts app. Robinhood will handle brokerage services and trustee duties, while the Treasury will retain control over the app and core operations.
Robinhood has also pledged to match the $1,000 contribution for eligible children of its employees.
The company’s stock closed at $69.65 on the day, before rising in after-hours trading to $74.92—an increase of more than 7.5%, according to Yahoo Finance.
At a closing price of about $69.65 per share, ARK Invest’s purchase of 182,641 Robinhood Markets shares amounts to roughly $12.7 million. The move marks the firm’s first addition to its Robinhood position in nearly a month.
Robinhood launches $1.5 billion share buyback
Last month, Robinhood’s board approved a $1.5 billion share repurchase program over the next three years, combining $1.1 billion in new authorization with unused capacity from a prior plan. The buyback comes as the company’s stock has faced pressure this year amid a broader downturn in equities and crypto markets.
In February, Robinhood reported fourth-quarter revenue of $1.28 billion, falling short of analyst expectations of $1.34 billion. Crypto-related revenue dropped 38% to $221 million, while net income declined 34% to $605 million. Earnings per share came in at 66 cents, slightly above estimates.
