ARK Invest, led by Cathie Wood, increased its holdings in Robinhood Markets by purchasing approximately $13 million worth of shares, following the platform’s selection for a new US government-backed savings initiative known as Trump Accounts.
ARK Funds Add Robinhood Shares Across Multiple ETFs
According to Tuesday trade disclosures, ARK Innovation ETF (ARKK) purchased 132,116 HOOD shares, while ARK Next Generation Internet ETF (ARKW) added 33,607 shares. The ARK Fintech Innovation ETF (ARKF) also bought 16,918 shares, bringing the total purchase to 182,641 shares, valued at about $12.7 million based on a closing price of $69.65 per share.
This marks ARK’s first Robinhood purchase in nearly a month. After the announcement, Robinhood shares rose in after hours trading to $74.92, gaining more than 7.5%, although the stock remains down 38% year-to-date.
US Treasury Assigns Key Role in Trump Accounts Program
The US Treasury named Robinhood as brokerage and initial trustee for Trump Accounts, a new tax-advantaged investment program for children. Eligible US citizens born between Jan. 1, 2025, and Dec. 31, 2028, will receive a $1,000 government contribution.
BNY was designated as financial agent to manage initial accounts and help develop the app, while the Treasury retains operational control. Robinhood also pledged to match the $1,000 contribution for eligible children of its employees.
Financial Performance and Share Buyback Plans
Robinhood recently approved a $1.5 billion share buyback program over three years, combining $1.1 billion in new capacity with prior allocations. In February, the company reported Q4 revenue of $1.28 billion, below expectations of $1.34 billion, while crypto revenue dropped 38% to $221 million. Net income declined 34% to $605 million, though earnings per share reached 66 cents, slightly beating estimates.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.