Cathie Wood’s ARK Invest added to its CoreWeave position and cut its Robinhood stake on Wednesday, as bitcoin fell amid pressure on risk appetite from rising Treasury yields, a stronger dollar and tensions in the Middle East. ARK’s ETFs bought a combined 214,589 shares of CoreWeave and sold 151,903 Robinhood shares through ARK Innovation ETF (ARKK).
ARK ETFs buy 214,589 CoreWeave shares
ARKK bought 143,673 CoreWeave shares, while ARK Next Generation Internet ETF (ARKW) added 70,916. CoreWeave (NASDAQ: CRWV) closed at $88.78, up 0.37%. The purchases brought the AI infrastructure company back into the funds’ allocations.
CoreWeave also faces an operating requirement tied to a $2.6 billion AI infrastructure loan. Severe service failures that affect customer contracts could trigger early-repayment provisions. If a service issue gives customers grounds to terminate contracts, the arrangement could first require cash to be held back. If the issue persists through three consecutive monthly payment dates, a cash-sweep mechanism could require the company to use funds in a pledged account to repay debt early.
The loan has a term of about five years, while the customer contracts supporting the financing have an average term of about three years. CoreWeave expects to renew contracts as they expire or lease the relevant GPU capacity to other customers. For investors, renewals, capacity utilization and service reliability are key factors for future cash flow and how the loan provisions may operate.
ARK trims Robinhood amid bitcoin weakness
ARKK sold 151,903 Robinhood Markets shares on Wednesday. Robinhood (NASDAQ: HOOD) closed at $109.83, up 0.29%, after falling during the session alongside bitcoin. Bitcoin was at $83,024.79, down 0.30%. Rising Treasury yields, a stronger dollar and conflict in the Middle East also weighed on demand for risk assets.
Robinhood recently spent $25 million to buy bitcoin for its balance sheet. Senior Vice President Johann Kerbrat said the purchase reflected the company’s continued participation in the crypto ecosystem, but did not signal a major strategic shift. The company is maintaining exposure to crypto while distinguishing the holding from its core business direction.
Analysts raise Robinhood price targets
On the same day as ARK’s sale, Barclays analyst Benjamin Budish kept an Overweight rating on Robinhood and raised his price target to $132 from $105. Bank of America maintained its Buy rating on Monday and lifted its target to $156 from $140.
The views reflect competing considerations for the company. Crypto volatility can affect trading activity and related revenue, while analysts are also watching user growth, product expansion and revenue sources beyond crypto. ARK’s sale reflects an ETF portfolio adjustment and, on its own, does not establish a change in Robinhood’s fundamentals.
Other ARK trades span biotech, defense and aviation
ARK’s funds made several other trades on Wednesday. ARK Fintech Innovation ETF (ARKF) bought 656,920 shares of Genius Sports (GENI) and sold 247,616 shares of DraftKings (DKNG). ARK Genomic Revolution ETF (ARKG) and ARKK together bought 1,880,067 shares of Recursion Pharmaceuticals (RXRX). ARKK also bought 209,379 shares of Kratos Defense & Security Solutions (KTOS), while ARKQ and ARK Space Exploration & Innovation ETF (ARKX) together bought 31,040 shares of AeroVironment (AVAV).
In electric aviation, ARKQ and ARKX together bought 433,331 shares of Joby Aviation (JOBY). ARKK, ARKQ and ARKX together bought 161,214 shares of Archer Aviation (ACHR). The day’s trades involved both additions and reductions across AI infrastructure, crypto trading, biotechnology, defense and electric aviation.
As of Wednesday, Robinhood’s momentum score stood at the 72nd percentile in its peer ranking, while its value score was at the 9th percentile. Investors will be watching bitcoin prices and Robinhood’s crypto business, as well as CoreWeave’s contract renewals and whether any loan provisions are triggered.