TLDR
- ARK Invest purchased $33.8 million in Robinhood stock during Wednesday’s 9% decline following Q4 earnings disappointment
- Robinhood’s prediction markets business hit $12 billion in 2025 contracts and has already processed $4 billion in 2026
- The company’s new Robinhood Chain testnet launched for tokenized real-world assets and institutional services
- ARK’s total Robinhood position now stands at $248 million, making it the fund’s largest crypto-related holding
- Wall Street analysts maintain Strong Buy rating with average price target implying 56.9% upside potential
Cathie Wood doubled down on Robinhood Wednesday, buying $33.8 million worth of shares as the stock crashed nearly 9%. The contrarian purchase came after the company reported Q4 revenue that fell short of analyst expectations.
Cryptocurrency trading volumes plunged during the quarter as Bitcoin pulled back from recent highs. The digital asset briefly dropped below $66,000, triggering widespread selling across crypto-related stocks.
While most investors sold, ARK Invest went the opposite direction. The firm also added $16 million in shares of crypto exchange Bullish and stablecoin issuer Circle during the Wednesday selloff.
The aggressive buying pushed Robinhood to the top of ARK’s crypto holdings. The fund now owns approximately $248 million in shares, representing a 4.1% portfolio allocation.
New Blockchain Launch
Robinhood just rolled out the testnet for Robinhood Chain, a Layer 2 blockchain designed for tokenized real-world assets. The platform targets institutional financial services and represents a major expansion beyond retail trading.
ARK’s purchase suggests Wood is looking past short-term earnings noise. The focus appears to be on Robinhood’s evolution into a blockchain infrastructure company.
The broader crypto market faced headwinds Wednesday. U.S. spot Bitcoin ETFs recorded $276.3 million in net outflows, nearly wiping out the week’s gains. Total assets under management fell to $85.7 billion, marking the lowest level since late 2024.
Bitcoin has since recovered to around $67,200. However, institutional buyers remain cautious about jumping back into the market.
Prediction Markets Growth
CEO Vlad Tenev painted an optimistic picture during Tuesday’s earnings call. He called prediction markets a “supercycle” opportunity that could drive trillions in annual trading volume over time.
The numbers back up his enthusiasm. Prediction markets volume doubled in Q4, finishing 2025 with $12 billion in total contracts. The business has already generated $4 billion in volume during the first six weeks of 2026.
Tenev told CNBC he’s “very bullish” on crypto despite recent volatility. The company plans to keep expanding its digital asset products alongside the fast-growing prediction markets division.
Robinhood is developing its own prediction market platform in partnership with Susquehanna International Group. The joint venture would give the company more control over contract types and potentially improve profit margins compared to using third-party exchanges.
The platform is scheduled to launch later this year. It will compete directly with established players like Kalshi and Polymarket.
Investors can expect more announcements at Robinhood’s “Take Flight” event on March 4. Tenev is set to introduce new products and provide updates on strategic initiatives.
Analysts remain bullish on the stock despite Wednesday’s drop. Wall Street has issued 14 Buy ratings, three Holds, and zero Sells over the past three months. The average 12-month price target of $135.79 represents 56.9% potential upside from current levels.
Shares are down nearly one-third year-to-date after Wednesday’s decline.
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