In a period marked by significant volatility and widespread apprehension across the cryptocurrency landscape, Cathie Wood’s Ark Invest made a series of noteworthy investment decisions. The firm strategically acquired additional shares in prominent digital asset entities such as Coinbase, Circle, and Robinhood. These transactions took place as leading cryptocurrencies, including Bitcoin, experienced substantial price corrections, with Bitcoin briefly falling below $73,000 to its lowest point since November 2024. This market turbulence led to over $750 million in liquidations and a prevailing sentiment of “extreme fear” among investors. Despite these challenging conditions, Ark Invest’s moves underscore a continued conviction in the underlying value and future growth prospects of these companies within the evolving digital finance ecosystem.
On a specific day of heightened market activity, Ark Invest's various funds, including ARK Innovation ETF (ARKK) and ARK Blockchain & Fintech Innovation ETF (ARKF), executed several key trades. For instance, the ARKF fund invested approximately $630,606 into Coinbase Global Inc. by acquiring 3,510 shares. This occurred as Coinbase, a major cryptocurrency exchange, saw its stock price decline by 4.36% to close at $179.66. The broader sell-off in crypto-related equities was influenced by Bitcoin’s dip below $80,000, driven by a tightening U.S. liquidity environment which negatively impacted high-risk assets. This scenario led to investors absorbing ETF losses and a general weakening of market confidence throughout the sector.
Further emphasizing their investment thesis, Ark Invest's ARKK, ARKF, and ARK Next Generation Internet ETF (ARKW) funds collectively purchased 89,677 shares of Robinhood, amounting to an approximate value of $7.8 million. This move came after Robinhood's shares had experienced a sharp decline, shedding about 40% from their 52-week high and entering oversold territory. Ark's substantial investment of roughly $32.7 million in Robinhood shares suggests a strategic bet on a potential long-term rebound, possibly influenced by proposed "Trump Accounts" and an anticipated technical recovery for the stock. Additionally, Circle, the issuer of USDC, saw its stock drop by 4.59% on the same day, yet Ark Invest's ARKK and ARKF funds still acquired 42,878 shares of Circle, valued at approximately $2.4 million based on its closing price of $56.16.
The firm also expanded its holdings in the ARK 21Shares Bitcoin ETF, with ARKF and ARKW funds jointly acquiring 135,131 shares, valued at around $3.4 million. This ETF, which mirrors Bitcoin’s performance, experienced a 1.97% decrease, closing at $25.36. This acquisition demonstrates Ark’s unwavering belief in Bitcoin’s enduring potential and its integral role in the future of finance. Similarly, the ARKK fund purchased 145,488 shares of Bitmine Immersion Technologies, valued at about $3.25 million. Bitmine, an Ethereum treasury management firm chaired by Tom Lee, faced a 1.97% drop, with its stock closing at $22.35. These investments reflect Ark’s dedication to companies that form the crucial infrastructure of the cryptocurrency market.
In another notable transaction, ARKF and ARKK funds acquired a total of 125,218 shares of Bullish, a digital asset exchange, worth approximately $3.5 million. Bullish's stock declined by 3.93%, closing at $27.64. Ark's investment in Bullish, which is backed by PayPal co-founder Peter Thiel, aligns with its overarching strategy to support platforms facilitating the trading and exchange of digital assets. While Coinbase represents a larger portion of Ark's portfolio at 3.52%, Bullish still accounts for a significant 1.15%, with Ark’s holdings in Bullish valued at $138.6 million at the time of reporting. These diverse investments across different facets of the crypto economy underscore Ark Invest's long-term vision, even in the face of prevailing market anxieties.