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.

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.