ARK Invest, led by Cathie Wood, has continued its investment in Robinhood Markets with a $14.2 million purchase of shares on Monday. This move follows a $9 million acquisition of Robinhood stock just last Friday, highlighting ARK’s growing interest in the trading platform.

The latest purchase involved 123,336 shares for the ARK Innovation ETF (ARKK), increasing Robinhood’s weighting to 4.09% of the fund’s total holdings. This investment strategy aligns with ARK’s broader focus on companies operating in the digital asset space.

Cathie Wood and Ark Invest bought 123,336 shares of Robinhood $HOOD today pic.twitter.com/py4zH0HYBx

— Evan (@StockMKTNewz) August 19, 2025

The investment firm made headlines last week with a major $172 million purchase of Bullish shares across three of its ETFs. Bullish, a cryptocurrency exchange, had just made its debut on the New York Stock Exchange. These combined moves show ARK’s continued commitment to investing in the future of digital assets.

Robinhood has shown strong performance in the cryptocurrency sector. According to its most recent earnings report, the company’s crypto trading volume increased 32% year-over-year to $28 billion in the second quarter. Even more impressive was the 98% rise in transaction-based crypto revenue, which reached $160 million.

ARK’s Strategic Investment Approach

ARK’s approach to Robinhood reflects a pattern of strategic patience and market timing. Over the past four years, the investment firm has cycled through buying and selling Robinhood shares at various price points. In Q4 2024, ARK sold 28.2% of its shares at an average price of $32.59, while in Q4 2023, it added 6.4% at $9.94.

The recent purchases at much higher prices suggest ARK’s belief in Robinhood’s long-term value despite any regulatory challenges the company might face. ARK’s total stake in Robinhood is now valued at approximately $1.07 billion, representing 7.62% of its equity portfolio.

Robinhood has evolved from a zero-commission trading app to a more comprehensive financial service platform. The company has expanded into areas such as robo-advisory services, crypto staking, and tokenized assets. These innovations align well with ARK’s focus on “next-generation internet” and digital asset themes.

Robinhood’s Market Performance

Robinhood’s stock closed up 0.74% at $115.02 on Monday, according to Yahoo Finance data. The stock has gained 4.8% over the past month and has seen a massive 208.7% increase year-to-date.

The trading platform boasts approximately 20 million users, primarily millennials and Gen Z. It now manages total platform assets of $298 billion. Robinhood’s AI assistant, known as Cortex, offers real-time market insights to users, while its robo-advisory services currently manage $12 billion in assets.

Robinhood has also made efforts to bolster its institutional credibility through strategic acquisitions. The company purchased Bitstamp and WonderFi, enabling it to offer crypto staking, custody, and trading solutions to institutional clients. These moves have helped diversify Robinhood’s revenue streams.

However, the company still faces regulatory challenges. Earlier this year, Robinhood reached a $45 million settlement with the SEC over compliance issues. ARK’s continued investment suggests confidence in Robinhood’s ability to navigate these regulatory hurdles.

Analysts maintain a “Moderate Buy” rating for Robinhood on TipRanks, with a price target of $23.54. This actually represents an 8.1% downside from current levels, showing that not everyone shares ARK’s optimistic outlook for the stock.

For ARK, the investment in Robinhood is part of a larger narrative about how AI is becoming fundamental to financial infrastructure. The firm’s “Big Ideas 2025” report emphasizes how AI agents are transforming various aspects of finance, from fraud detection to automated investment strategies.

Robinhood’s most recent transaction data shows its crypto volume hit $28 billion in Q2 2025, with transaction revenue reaching $160 million.