Cathie Woods ARK Invest Grows Exposure to Crypto-Related Stocks As Crypto Market Takes A Dip
ARK Invest, spearheaded by Cathie Woods, has once again expanded its footprint in the crypto stocks arena. The fund took advantage of the recent market downturns to buy more stocks from crypto-related firms. On Wednesday, ARK Invest purchased stocks from Bullish, Circle Internet Group, and BitMine Immersion Technologies, thereby spreading its investment across various exchange-traded funds (ETFs).
As the market rates of crypto stocks sank further into the decline, the interest of ARK Invest seemed to contrary incline. As outlined in ARK’s daily trade disclosure, the ARK Fintech Innovation ETF (ARKF) acquired 48,011 shares of Bullish. Further, the ARK Next Generation Internet ETF (ARKW) secured an additional 92,670 shares. However, the ARK Innovation ETF (ARKK) made the most significant purchase, picking up 322,917 shares of Bullish, subsequently increasing its cumulative investment to approximately $16.8 million.
ARK’S Bet on Circle and BitMine
Circle Internet Group, the masterminds behind the USDC stablecoin, also caught the attention of ARK Invest. Driven by their investment strategy, ARKF purchased 22,327 shares, ARKW added 43,174 shares, while ARKK stands at the helm with the acquisition of 150,518 shares. This purchase summates to an approximate worth of $15 million in shares, thereby deepening ARK Invest’s role in the stablecoin sector.
ARK Invest also turned its investment needle to BitMine Immersion Technologies, a leader in Bitcoin mining and immersion cooling technologies. ARKF purchased 26,923 shares, ARKW added 51,954 shares, and ARKK once again topped the chart by securing the highest amount, 181,774 shares. This movement from ARK Invest brought the total investment in BitMine Immersion Technologies to around $7.6 million.
Crypto Market Downturn Impacting Crypto-Related Stocks
The crypto market faced a significant dip from its October highs, which saw the affected crypto-related stocks further weakened. Bullish saw a 3.63% decrease to $36.39, Circle also closed the session with close to a 9% decrease at $69.72, BitMine recorded a 9.5% decrease, though it did recover by 6% after the trading hours. Despite the market decline, ARK Invest has shown their belief in the potential of these stocks, remaining undeterred by temporary market fluctuations.
The strategic moves and undeterred stance displayed by ARK Invest come as no surprise, seeing as the firm has consistently seized the opportunity to buy more shares despite declining market conditions. ARK Invest also made a similar investment move earlier this week when they purchased $10.2 million worth of BitMine shares as the stock price fell to a record low.
NVIDIA Delivers Blockbuster Quarter Despite Downturn
On Wednesday, another significant event in the tech industry saw NVIDIA post a whopping $57 billion in revenue and $31.9 billion in profit. Such earnings far exceeded Wall Street’s expectations. The chipmaker also placed expectations for a strong fourth-quarter revenue forecast, amounting to about $65 billion, thereby holding the market anxiety at bay regarding AI demands cooling off. The positive earnings elevated the tech and crypto-linked stock industry’s mood, successfully achieving an over 5% increase in NVIDIA shares after trading hours.
The Wrap
In spite of the impact of a retreating crypto market on crypto-exposed stocks, the moves of ARK Invest appear to underscore a certain level of confidence in the long-term potential of these holdings. With the backing of ARK Invest and their demonstrated belief in the crypto industry’s growth potential, the future of crypto-related stocks could be promising, despite current market conditions.
