Ark Invest adds Coinbase, Circle and Robinhood shares as stocks drop
Ark Invest buys into Coinbase, Circle and Robinhood
Cathie Wood-led Ark Invest bought shares of Coinbase, Circle and Robinhood on Monday, according to its latest trading disclosure.
The purchases came through Ark's exchange-traded funds, or ETFs, which are investment vehicles that trade on stock exchanges like a single company's shares. Ark also sold shares of crypto exchange Bullish.
What the trades were
- Ark bought 24,790 Coinbase shares, worth $3.4 million, through its ARKK, ARKW and ARKF ETFs.
- It bought 35,657 Circle shares, worth $2.6 million.
- It added 7,703 Robinhood shares, worth $645,820 based on Monday's closing price.
- It sold 104,172 Bullish shares, worth $2.3 million.
All three stocks Ark bought closed lower on Monday. Coinbase shares fell 3.98% to $137.83. Circle shares dropped 0.6%. Robinhood shares were down 1.35%.
Why the purchases stand out
Coinbase posted strong third-quarter earnings the week before the trades. Its net income rose 66% year over year to $719 million, from $433 million in the same period last year. Total revenue was $1.22 billion, broadly flat from the previous quarter but down 35% year over year.
Coinbase's prediction markets business, where people bet on the outcome of real-world events, passed $200 million in annualized revenue, doubling from roughly $100 million the previous quarter. Bernstein analysts said Friday that growth in prediction markets and in subscription and services revenue helped offset softer crypto trading activity.
What is coming up
Circle is scheduled to report its Q3 earnings on Nov. 4. Consensus estimates, according to TradingView, call for revenue of $788.17 million and earnings per share of $0.37.
Robinhood reported last week that its crypto revenue jumped 20% from the previous quarter to $120 million, offsetting a decline in crypto trading revenue. Bullish is expected to report Q3 earnings on Nov. 18.
What is still unclear
The disclosure does not explain why Ark chose to increase its stake in the three companies on the same day their shares fell, or why it trimmed Bullish. The disclosure itself is the only source for the trades.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.