CoinDesk
ARK Invest bought about $9.1 million of Robinhood shares on Wednesday, adding 99,418 shares across ARKK, ARKW and ARKF. It was the firm’s largest HOOD purchase since April 29 and its first since Sept. 8, following sales of about $47.5 million of shares from Oct. 6 through Oct. 9.
The buying came as Robinhood’s share-price slide deepened. HOOD fell 3.3% on Wednesday to close at $91.43, extending its one-month decline to more than 23%. The stock was down a further 1.88% to $89.70 in premarket trading.
Why it matters
ARK’s renewed buying contrasts with its sizable sales earlier in October, but the company’s latest results show pressure in a key business line. Third-quarter crypto transaction revenue fell 55% year over year to $120 million, while crypto trading volume dropped 38% to $50 billion.
Other businesses provided growth. Prediction markets generated $173 million, more than six times the year-earlier figure and more than crypto trading revenue. Options revenue rose 31% to $399 million.
Market impact
Robinhood reported record total revenue of $1.42 billion, up 12%, but revenue came in just below analyst estimates. Earnings per share of $0.51 also missed the $0.55 consensus, and net income fell 14% to $476 million.
The figures leave investors weighing growth in prediction markets and options against falling crypto activity and earnings misses. ARK’s purchase marks a change in its recent trading direction, while HOOD’s continued decline shows the shares remain under pressure.
Frequently asked questions
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How large was ARK Invest’s Robinhood purchase?
ARK bought about $9.1 million of Robinhood shares, adding 99,418 shares across ARKK, ARKW and ARKF. It was the firm’s largest HOOD purchase since April 29.
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How did ARK’s purchase compare with its October trading?
The purchase reversed sales of about $47.5 million in Robinhood shares from Oct. 6 through Oct. 9. It was ARK’s first purchase since Sept. 8.
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What happened to Robinhood’s crypto business in the third quarter?
Crypto transaction revenue fell 55% year over year to $120 million, while crypto trading volume dropped 38% to $50 billion.
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How much revenue did Robinhood’s prediction markets generate?
Prediction markets generated $173 million, more than six times the year-earlier figure and more than Robinhood’s crypto trading revenue.
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Did Robinhood beat analysts’ earnings expectations?
No. Revenue came in just below estimates, earnings per share was $0.51 versus the $0.55 consensus, and net income fell 14% to $476 million.
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