In a calculated move amidst a declining market, ARK Invest seized an opportunity to purchase significant amounts of stocks from prominent companies in the cryptocurrency sector on Monday. This acquisition comes as major players such as Coinbase (COIN), Bullish (BLSH), and Circle (CRCL) continue to face a protracted slide in their stock values.
According to a recent email disclosure, ARK Invest allocated approximately $59 million to bolster its holdings in the cryptocurrency arena. This included a substantial investment of around $16.3 million in Coinbase, approximately $5.2 million in Bullish, and roughly $10.8 million in Circle Internet Group. Additionally, ARK’s purchases encompassed about $17 million in Bitmine Immersion Technologies and nearly $9.9 million in CoreWeave, strategically adding to its existing investments in these firms during a downturn.
Prior to ARK’s intervention, crypto stocks had experienced a downward trend for several consecutive sessions. On the day of ARK’s acquisition, Bitmine saw a decline of more than 11%, while Circle and CoreWeave faced drops of nearly 10% and close to 8%, respectively. Furthermore, Coinbase’s value decreased by over 6%, and Bullish extended its ongoing decline as selling pressure intensified across the industry.
ARK Invest has long adopted a strategy of capitalizing on market dips rather than chasing bullish momentum. Their philosophy is reflected in their pattern of purchasing during multi-day selloffs in the crypto space, demonstrating a commitment to increasing exposure even when stock prices are on a downward trajectory.
Cryptocurrency investments constitute a significant portion of ARK’s portfolio. The firm maintains substantial stakes, with approximately $609 million in Coinbase, about $323 million in Circle Internet Group, around $275 million in Bitmine Immersion Technologies, nearly $194 million in Bullish, and around $140 million in CoreWeave. The recent buy-ins not only reflect ARK’s confidence in the potential of these companies but also serve to deepen its already considerable positions in the cryptocurrency market.
