ARK Invest Doubles Down on Coinbase (COIN), Circle, and Robinhood (HOOD) During Market Pullback

Key Highlights

• ARK Invest acquired additional positions in Coinbase, Circle, Robinhood, and Bullish during Thursday’s market downturn
• The investment firm deployed approximately $5.4 million into these four cryptocurrency-related equities via ARKK, ARKW, and ARKF funds
• ARK additionally purchased $20.4 million in Cerebras Systems stock while divesting from Alibaba and Roku holdings
• Cathie Wood forecasts declining inflation, highlighting increasing productivity as a significant deflationary driver
• ARK continuously adjusts its ETF holdings to maintain individual stock allocations below 10% per fund

On Thursday, June 25, Cathie Wood’s ARK Invest executed multiple strategic transactions, accumulating additional positions in four cryptocurrency-exposed companies despite downward price momentum.

The investment firm acquired 9,014 Coinbase shares totaling approximately $1.28 million distributed among its ARKK, ARKW, and ARKF exchange-traded funds. Coinbase shares finished the session 5% lower at $142.52.

Coinbase Global, Inc., COIN

Additionally, ARK secured 9,264 shares of Circle valued at roughly $637,000, alongside 9,136 Bullish shares totaling just under $200,000. Circle’s stock declined 3% to close at $68.81, while Bullish experienced a 6.77% drop, settling at $21.88.

Using its ARKK ETF, the firm accumulated 35,023 Robinhood shares worth approximately $3.27 million. Robinhood stock finished 3.85% down at $93.47.

Strategic Buying During Price Weakness

ARK’s acquisition approach aligns with its established portfolio management framework. The firm routinely rebalances its exchange-traded funds when individual holdings fluctuate in value, ensuring no single position exceeds 10% of any fund’s aggregate assets.

When share prices decline, the proportional weight of those holdings decreases within the portfolio. ARK responds by purchasing additional shares to restore them to target allocation levels.

Consequently, Thursday’s weakness in cryptocurrency-related stocks likely initiated these automatic rebalancing transactions.

Major Cerebras Acquisition and Notable Dispositions

Beyond cryptocurrency-linked equities, ARK executed its most substantial single transaction of the day in Cerebras Systems, purchasing 111,989 shares valued at slightly above $20.4 million. ARK has been systematically expanding this holding throughout recent trading sessions.

Regarding portfolio reductions, ARK liquidated 176,004 Alibaba shares totaling $17.6 million and 130,666 Roku shares worth $17.8 million. Both dispositions extend ARK’s ongoing pattern of reducing exposure to these companies.

ARK also accumulated 30,528 Palantir shares valued at $3.46 million and an additional 350,023 Robinhood shares worth $3.4 million throughout its broader ETF platform.

Within the biotechnology sector, ARK purchased shares of Recursion Pharmaceuticals and Tempus AI, while completely exiting positions in Twist Bioscience and Absci.

Wood’s Inflation Outlook

During a promotional tour spanning Asia and Europe, Cathie Wood shared on X that inflation may “break down in a big way.”

She highlighted unit labor costs, which according to her assessment are currently advancing at merely 0.5% on a year-over-year basis.

Wood attributed accelerating productivity as a critical deflationary element that market participants are currently underappreciating.

She also referenced Federal Reserve candidate Kevin Warsh, expressing her belief that he comprehends both productivity’s impact on reducing inflation and the inadequacies in current government inflation measurement methodologies.

Wood indicated that Warsh would deliver financial markets “a master class in monetary policy” upon confirmation.

Following Thursday’s transactions, all four cryptocurrency-related companies — Coinbase, Circle, Robinhood, and Bullish — continue as active holdings within ARK’s ETF portfolios.

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