Robinhood (HOOD) stock is soaring 5.04% in pre-market trading on Friday, following news that Ark Invest, led by CEO Cathie Wood, has made a significant investment in the company. The move by the influential investment firm has sparked renewed interest in the trading platform's shares.

According to Ark Invest's daily trade disclosure, the firm purchased $21.3 million worth of Robinhood shares across two of its flagship ETFs. The Ark Innovation ETF (ARKK) acquired 131,049 shares, while the Ark Next Generation Internet ETF (ARKW) added 36,440 shares. This investment has made Robinhood nearly 19% of both funds' holdings, signaling strong confidence in the company's future prospects.

The surge in Robinhood's stock price comes as the company continues to expand its presence in the cryptocurrency market. Recent acquisitions, including WonderFi and Bitstamp, have strengthened Robinhood's position in Canada and provided access to global licensing and institutional order books. Additionally, the company is developing a Layer-2 blockchain on Arbitrum (ARB) and has recently added BNB trading, further diversifying its crypto offerings. These strategic moves align with Ark Invest's broader interest in crypto-related companies, suggesting that Wood sees potential in Robinhood's evolving business model.