TLDR
- ARK Invest bought $33.8 million in Robinhood shares Wednesday as the stock fell 9% after missing Q4 revenue targets
- The purchase brings ARK’s total Robinhood holdings to $248 million, now the largest crypto position in the flagship fund
- Robinhood launched testnet for its Layer 2 blockchain targeting tokenized assets and institutional financial services
- Prediction markets volume doubled in Q4 to $12 billion for 2025, with $4 billion already processed in 2026
- Analysts maintain Strong Buy rating with $135.79 price target suggesting 56.9% upside from current levels
Cathie Wood went bargain hunting Wednesday, snapping up $33.8 million in Robinhood shares as the stock tumbled 9%. The purchase came after the company reported Q4 results that missed Wall Street’s revenue expectations.
Cryptocurrency trading volumes dropped sharply during the quarter. Bitcoin’s recent pullback below $66,000 triggered selling pressure across digital asset stocks.
ARK Invest didn’t stop with Robinhood. The firm added another $16 million in crypto-related names including Bullish and Circle as prices declined across the sector.
The buying spree elevated Robinhood to ARK’s top crypto holding. Total shares now stand at roughly $248 million, accounting for 4.1% of the Innovation ETF’s assets.
Blockchain Infrastructure Push
Robinhood recently launched the testnet for Robinhood Chain. This Layer 2 blockchain is built specifically for tokenized real-world assets and institutional financial products.
Wood appears to be betting on a fundamental business shift. Rather than focusing on one weak quarter, ARK seems interested in Robinhood’s transition toward becoming a blockchain infrastructure provider.
The crypto market faced challenges Wednesday. Bitcoin ETFs posted $276.3 million in outflows, erasing most of the week’s inflows. Assets under management dropped to $85.7 billion, the lowest point since late 2024.
Bitcoin has stabilized near $67,200 since then. But institutional investors remain hesitant to add exposure without stronger market signals.
Prediction Markets Momentum
CEO Vlad Tenev focused on a different story during the earnings call. He described prediction markets as entering a “supercycle” that could eventually produce trillions in annual trading activity.
The metrics support his case. Prediction markets volume more than doubled in Q4, ending 2025 with $12 billion in contracts. The first six weeks of 2026 have already generated $4 billion in volume.
Tenev remains confident in crypto’s long-term prospects despite recent turbulence. He told CNBC the company will continue expanding both digital asset offerings and prediction markets.
Robinhood is working on its own prediction market platform with Susquehanna International Group. The joint venture would give the company direct control over contract offerings and potentially better economics than partnering with existing exchanges.
The platform should go live later this year. It will challenge established competitors Kalshi and Polymarket in a market experiencing rapid growth.
Tenev plans to reveal more details at the company’s “Take Flight” event scheduled for March 4. New products and strategic updates are expected during the presentation.
Wall Street remains upbeat on the stock. Fourteen analysts rate it a Buy, three have Hold ratings, and none recommend selling. The consensus price target of $135.79 points to 56.9% upside potential.
Shares have lost nearly a third of their value year-to-date following Wednesday’s decline.
