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ARK Invest Expands Crypto Holdings with Major BitMine, Bullish Buys
ARK Invest ramped up its exposure to crypto-linked equities during the market downturn. The investment firm led by Cathie Wood purchased $8.7 million worth of BitMine Immersion Technologies and Bullish shares across multiple ETFs on Friday. The buying spree came on a day when both stocks dropped nearly 6%.
Friday’s Buying Breakdown by Fund
According to ARK’s daily trade disclosures, the firm accumulated BitMine shares through three different ETFs. ARK Fintech Innovation ETF (ARKF) purchased 18,089 shares, ARK Next Generation Internet ETF (ARKW) bought 34,637 shares, and ARK Innovation ETF (ARKK) acquired 116,681 shares.
The daily total of 169,407 BitMine shares was worth approximately $5.83 million. The purchases occurred as BitMine closed down nearly 6% at $34.40. The stock showed a slight recovery in after-hours trading.
On the Bullish side, ARKF bought 8,063 shares, ARKW added 15,441 shares, and ARKK acquired 52,011 shares. The combined 75,515 Bullish shares cost approximately $2.91 million. Bullish stock closed down 6.19% at $38.48.
Recent Weeks Show Aggressive Crypto Buying
ARK’s latest acquisitions continue the firm’s aggressive accumulation strategy in the crypto sector. Last week, the company scooped up 542,269 Circle (CRCL) shares over a two-day period, spending roughly $46 million.
The purchases included $30.4 million on Wednesday and $15.5 million on Thursday. These transactions occurred as CRCL continued its decline, closing at $86 and then $82.30 respectively. ARK’s Circle buys marked the firm’s first purchases since June.
Back in June, the firm sold approximately 1.7 million Circle shares at an average of $200, booking $352 million in proceeds. Now the shares are being accumulated at significantly lower price points.
Alongside Circle, ARK has been building its BitMine position. On Thursday, the firm acquired 242,347 BitMine shares for about $8.9 million as the stock dipped below $37.
BitMine’s $11 Billion Ethereum Treasury
ARK’s buying coincides with significant corporate changes at BitMine. The company appointed Chi Tsang as its new CEO, replacing Jonathan Bates. Three new independent board members were also named to strengthen governance.
BitMine’s treasury now holds more than 3.5 million Ethereum, valued at over $11 billion. Originally a crypto-mining operation, the company has transformed its strategy to become one of the largest institutional holders of Ethereum.
This approach draws comparisons to Michael Saylor’s Bitcoin-focused strategy with MicroStrategy. Both companies are accumulating massive amounts of cryptocurrency through balance sheet strategies.
Buy-the-Dip Strategy in Action
ARK Invest’s increased buying during downturns reflects the firm’s long-term conviction in crypto-linked equities. Cathie Wood’s funds have historically shown a tendency to add positions during volatile periods.
However, this strategy carries risks. With ongoing uncertainty in crypto markets, share prices could face further downside. ARK’s recent moves demonstrate confidence in the sector’s long-term potential, but short-term price action remains unpredictable.
The firm’s willingness to deploy capital during weakness suggests it views current valuations as attractive entry points. Whether this timing proves profitable will depend on how crypto markets evolve in the coming months.
