Ark Invest Makes Strategic Shift with $175M Ethereum Bet

By: Eva Baxter

Ark Invest, led by Cathie Wood, has executed a significant strategic pivot in its cryptocurrency investment approach, as revealed in recent trading disclosures. The firm has reduced its holdings in prominent crypto-linked stocks like Coinbase, Robinhood, and Block, channeling resources towards BitMine Immersion, a major player in the Ethereum treasury arena.

The latest disclosures illustrate that Ark Invest acquired 4.4 million shares of BitMine Immersion (BMNR) across three of its exchange-traded funds (ETFs): Ark Innovation ETF (ARKK) acquired 2,937,432 shares, Ark Next Generation Internet ETF (ARKW) added 927,898 shares, and Ark Fintech Innovation ETF (ARKF) purchased 555,704 shares. These trades underline a substantial $175 million investment based on BMNR's closing price of $39.57 per share.

BitMine Immersion stands out due to its impressive Ethereum reserves, currently ranking as the leading Ethereum holder globally with over 300,000 ETH. It surpasses the holdings of other significant players, such as SharpLink and the Ethereum Foundation, which possess considerable but lesser Ethereum reserves.

In line with this Ethereum-focused reallocation, Ark Invest has also trimmed exposure to the top crypto-related stocks. The firm sold approximately 218,986 shares of Coinbase for $90.6 million, 109,824 shares of Robinhood for $11.46 million, and 90,061 shares of Block for around $7 million. These transactions took place across ARKK, ARKW, and ARKF ETFs.

This shift in investments aligns with Ark's strategy of capitalizing on profitable assets while seeking emerging opportunities within the cryptocurrency sector. Notably, Coinbase has experienced a stock surge, buoyed by positive regulatory developments in the US, including significant bills passed by Congress. Similarly, Robinhood has witnessed a rise in its share value, driven by optimism surrounding its innovative crypto product offerings in Europe. Block, led by Jack Dorsey, has also gained traction by being added to the S&P 500 index.

The decision to beef up investments in BitMine Immersion reflects Ark Invest's belief in the growing institutional interest in Ethereum treasury strategies, suggesting a long-term bullish outlook on Ethereum's potential within the cryptocurrency ecosystem.