ARK Invest, led by Cathie Wood, has increased its stake in Robinhood Markets, acquiring approximately $13 million worth of shares across multiple funds. Tuesday trade disclosures reveal that the ARK Innovation ETF led the buying activity, picking up 132,116 shares of Robinhood. The ARK Next Generation Internet ETF added 33,607 shares, while the ARK Fintech Innovation ETF contributed a further 16,918 shares. In total, ARK accumulated 182,641 shares, equating to roughly $12.7 million at the closing price of $69.65. This represents the firm’s first Robinhood purchase in nearly a month.
The move followed an announcement by the US Treasury that Robinhood would serve as brokerage and initial trustee for a new government-backed savings program known as Trump Accounts. The initiative is designed as a tax-advantaged investment account for children, with eligible US citizens born between January 1, 2025 and December 31, 2028 set to receive a $1,000 government contribution. BNY has been designated as financial agent and will manage the initial accounts while helping develop the Trump Accounts app. The Treasury stated it will retain control over the app and operations for those initial accounts.
Robinhood has also committed to matching the government’s $1,000 contribution for eligible children of its own employees. The company’s stock closed marginally lower on the day at $69.65, but surged more than 7.5% in after-hours trading to reach $74.92, according to data from Yahoo! Finance. The after-hours jump reflects investor enthusiasm surrounding Robinhood’s newly secured role in the federal program. The appointment positions the platform prominently within a government-sponsored financial initiative targeting a multi-year cohort of newborns.
Separately, Robinhood’s board recently approved a share buyback program worth $1.5 billion to be executed over the next three years. The plan combines $1.1 billion in new repurchase capacity with amounts carried over from a prior program. The buyback was authorized against a backdrop of pressure on Robinhood’s stock, which has faced headwinds this year amid a broader decline in equities and cryptocurrency markets. The repurchase program signals management confidence in the company’s long-term value despite near-term market challenges.
Robinhood’s most recent quarterly results showed mixed performance. The company reported fourth-quarter revenues of $1.28 billion in February, falling short of analyst expectations of $1.34 billion. Crypto revenues declined 38% to $221 million during the period, while net income dropped 34% to $605 million. Earnings per share came in at 66 cents, slightly ahead of analyst estimates, offering a modest bright spot within an otherwise disappointing set of figures.
Originally reported by CoinTelegraph.
