Cathie Wood Buys The Dip In Heavy-Crypto-Exposure Stocks Robinhood And Block

Cathie Wood's Ark Investment Management on Monday bought more shares in Robinhood Markets Inc HOOD and Block Inc SQ on the dip as the cryptocurrency-related stocks traded lower amid growing concerns over the spread of the omicron variant.

The popular money manager bought 62,500 shares — estimated to be worth $1.12 million — in Robinhood on the day shares of the financial platform that deals in stocks, exchange-traded funds and cryptocurrencies declined.

Robinhood stock closed 5.6% lower in the regular session on Monday at $18.14 a share. The stock is down 48% since going public in July.

Robinhood last week acquired Cove Markets, a cross-exchange trading platform. This is the first such acquisition for Robinhood Crypto, as it prepares to roll out cryptocurrency wallets.

The wallets would allow Robinhood users to deposit or withdraw cryptocurrencies like Bitcoin (CRYPTO: BTC), Ethereum ETH/USD and Dogecoin DOGE/USD.

See Also: Cathie Wood Trims Another $49.4M From Coinbase Stake And Buys More Square Shares Amid Crypto Enthusiasm

The popular zero-commission trading app on Thursday also said it is adding a cryptocurrency gifting feature for users, which would be operational from Dec. 22.

The money managing firm owns shares in Robinhood via three ETFs — the Ark Innovation ETF ARKK, the Ark Fintech Innovation ETF ARKF and the Ark Next Generation Internet ETF ARKW.

The three ETFs held 20.2 million shares — worth $385.9 million — in Robinhood, prior to Monday’s trade. 

Ark Invest also snapped up 27,359 shares — estimated to be worth $4.33 million — in the Jack Dorsey-led financial services and digital payments company Block.

See Also: Cathie Wood Loads Up $6.6M In Robinhood On The Dip

Square was recently renamed to Block to showcase the focus on blockchain.

Block shares closed 5.34% lower at $158.30 a share. The stock is down 28.4% so far this year.

Wedbush on Monday lowered the price target on Block to $190 from $250 and reiterated a Neutral rating. The brokerage cited continued indications of choppy consumer spending, renewed pandemic-driven B&M shutdowns/travel slowdown, and likely reduced spending on non-discretionary items given inflationary pricing pressure on staple goods.

Ark Invest owned 5.4 million shares — worth about $913 million — in Block, ahead of Monday’s trades.