Cathie Wood-led ARK Investment Management bought a huge stake in financial services company $Robinhood (HOOD.US)$ on a day when the stock corrected over 3%. Funds operated by ARK purchased over 562,800 shares of the company at an estimated valuation of over $5.3 million based on Thursday's closing price.

The purchase was conducted via the $ARK Innovation ETF (ARKK.US)$, the $ARK Next Generation Internet ETF (ARKW.US)$ and the $ARK Fintech Innovation ETF (ARKF.US)$.

Robinhood shares have risen over 8% in the last month and have registered about 17% gains since the beginning of the year, according to Benzinga Pro. It is the 7th largest holding of ARKF with a weight of 4.58%.

The company appears to be pushing the boundaries of the fintech space with its strategic acquisition of San Francisco-based X1, a platform that offers a no-fee credit card. Robinhood said it expects the final merger consideration to be approximately $95 million in cash.

Earlier this month, Robinhood had declared its user metrics for May with net cumulative funded accounts coming in at 23.1 million, up approximately 20,000 compared to April 2023. The company said while customers placing trades increased in May versus April, monthly active users declined to 10.6 million, down approximately 900,000 from April 2023.

Major Sale: ARK offloaded over 163,000 shares of sports betting company $DraftKings (DKNG.US)$ at an estimated valuation of over $4.1 million based on Thursday's closing price. DraftKings shares have risen over 130% since the beginning of this year.