Cathie Woods' ARK Invest Boosts Exposure to Ether Firm BitMine, Trims Tesla Shares

Increased Exposure to Ether Treasury Firm BitMine and Decrease in Tesla Shares by ARK Invest

Cathie Wood’s ARK Invest recently moved to increase its holdings in Tom Lee’s Ether Treasury company, BitMine, while it simultaneously decreased its share in Tesla. This change came to light in the company’s daily trading updates last Friday. The prominent investment manager ARK Invest allocated funds to accumulate a total of 48,454 BitMine shares that is an equivalent to the tune of $2 million across three of her exchange-traded funds (ETFs). These include the ARK Innovation ETF (ARKK), the ARK Fintech Innovation ETF (ARKF), and the ARK Next Generation Internet ETF (ARKW).

ARK’s Gradual Investment in BitMine

ARK’s increment in BitMine holdings aligns with its growing interest in the firm that began accumulating Ether, a crypto asset, in its treasury since April of this year. The considerably increased exposure in BitMine by Wood’s investment funds is a testament to the financial market’s growing acceptance of digital assets. In after-hours trading on Friday, BitMine shares had increased by up to 7.65%, with each share priced at $40.23. This rise in value has totaled to an impressive 415% growth since the beginning of the year which communicates potential profitability for investors.

ARK Reducing Tesla Holdings

In contrast to the increased holdings in BitMine, ARK Invest offloaded a total of about 71,638 Tesla shares across its funds. This move reduced its position by an estimated $30 million, based on the concluding price of Tesla’s shares at $429.52. The alteration affects two of ARK’s ETF funds – the ARKK ETF and the ARKW ETF, both of which have held Tesla as one of their keystone positions since 2018. On the same day that ARK sold off Tesla shares, Tesla’s share price fell by 3.68%. This turn of events comes as Tesla itself makes headlines. It was recently announced that Tesla shareholders had ratified CEO Elon Musk’s pay package, estimated be almost worth $1 trillion.

The New Pay Package of Elon Musk

Notwithstanding opposition from significant proxy advisors, Glass Lewis, and ISS, up to 75% of voting shares were in favor of the proposal concerning Musk’s pay package. This decision escalates Musk’s command over the company, taking his share of ownership from around 13% up to 25% if Tesla meets certain set business targets. In line with this approval, Musk has been awarded 12 tranches of stock that is associated with specific performance goals. These goals start from an estimated $2 trillion market cap, progressing in scales up to $8.5 trillion.

BitMine’s Ether Reserves and Current Market Standings

In the present market, BitMine holds almost $2.1 billion in unrealized losses linked to its Ether reserves, courtesy of the recent downturn in the crypto market. This financial reversal has dealt substantial losses to businesses with digital asset treasuries like BitMine. As of now, BitMine holds nearly 3.4 million ETH, with more than 565,000 ETH acquired over just the past month. This data suggests an aggressive investment strategy on the part of BitMine and further supports the growing industrial interest in digital assets. Overall, the strategic decisions of ARK and Cathie Wood highlight the shifting landscapes of current investment markets, with an increasing recognition of the value of digital assets.

Cathie Woods’ ARK Invest Boosts Exposure to Ether Firm BitMine, Trims Tesla Shares