Cathie Wood Buys CoreWeave Stock, Trims Robinhood As Bitcoin Slides

On Wednesday, Cathie Wood-led Ark Invest purchased shares of CoreWeave Inc. (NASDAQ:CRWV) while trimming its position in Robinhood Markets Inc. (NASDAQ:HOOD). The CoreWeave Trade ARK purchased 143,673 CoreWeave shares through the ARK Innovation ETF (BATS:ARKK) and another 70,916 shares through the ARK Next Generation Internet ETF (BATS:ARKW). The combined purchase totaled 214,589 shares. CoreWeave’s $2.6 billion AI infrastructure loan could require early debt repayments if serious service failures jeopardize customer contracts backing the financing. A breach that gives a customer the right to terminate can trigger a cash trap. If the issue persists through three consecutive monthly payment dates, a cash sweep can require CoreWeave to use funds in collateral accounts to repay debt early. The loan runs for about five years, while the underlying customer contracts average three years. CoreWeave expects to renew those contracts or lease the GPU capacity to other customers when they expire. Read Also: Applied Digital, Webull Corp., Super Micro Computer, Micron and Caterpillar: Why These 5 Stocks Are on Investors' Radars Today The Robinhood Trade Ark sold 151,903 Robinhood shares through ARKK on Wednesday. Robinhood shares fell during Wednesday’s session alongside Bitcoin (CRYPTO: BTC) as higher Treasury yields, a stronger dollar and the Middle East conflict weighed on risk appetite. The company also purchased $25 million worth of Bitcoin for its corporate balance sheet. Senior Vice President Johann Kerbrat said the purchase reflected Robinhood’s commitment to the crypto ecosystem and did not represent a major strategic shift. Meanwhile, Barclays analyst Benjamin Budish maintained an Overweight rating and raised his Robinhood price target to $132 from $105 on Wednesday. BofA had maintained a Buy rating on Monday while increasing its target to $156 from $140. Benzinga Other Key Trades Genius Sports Ltd. (GENI): ARKF purchased 656,920 shares via ARKF. DraftKings Inc. (DKNG): ARKF sold 247,616 shares through ARKF. Recursion Pharmaceuticals Inc. (RXRX): ARKG and ARKK purchased a combined 1,880,067 shares. Kratos Defense & Security Solutions Inc. (KTOS): ARKK bought 209,379 shares. AeroVironment Inc. (AVAV): ARKQ and ARKX purchased a combined 31,040 shares. Joby Aviation Inc. (JOBY): ARKQ and ARKX bought a combined 433,331 shares. Archer Aviation Inc. (ACHR): ARKK, ARKQ and ARKX purchased a combined 161,214 shares. Benzinga Edge Stock Rankings indicate Robinhood stock has a Momentum score in the 72nd percentile and a Value score in the 9th percentile. See More: Top Momentum Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: ChrisStock82 / Shutterstock