TLDR
- Ark Invest purchased 240,507 BitMine shares worth approximately $9 million on Thursday.
- The shares were bought across three of Ark Invest’s exchange-traded funds.
- The purchase occurred as BitMine’s stock dropped 9.8% during a challenging trading session.
- Ark Invest allocated 167,348 BitMine shares to its Ark Innovation ETF, worth $6.3 million.
- BitMine is now the 13th-largest holding in Ark’s ARKK and ARKW funds.
Cathie Wood’s Ark Invest bought 240,507 BitMine shares worth approximately $9 million on Thursday. The purchase was made across three of its exchange-traded funds (ETFs) as BitMine’s stock dropped 9.8%. This decline in BitMine shares comes amid broader struggles in the digital asset treasury sector.
The Cathie Wood-led firm acquired 167,348 BitMine shares for its Ark Innovation ETF (ARKK). The remaining shares were purchased for Ark Next Generation Internet ETF (ARKW) and Ark Fintech Innovation ETF (ARKF). Ark Invest’s strategy is to limit each individual holding to no more than 10% of a fund’s portfolio.
Ark Invest’s Buying Strategy for BitMine Shares
Ark Invest’s purchase of BitMine shares came as the stock price fell by nearly 10%. Of the total, 167,348 shares worth $6.3 million were allocated to ARKK. The Ark Next Generation Internet ETF (ARKW) received 48,361 shares, valued at $1.8 million, while ARKF added 24,798 shares worth approximately $927,000.
The firm has stated its strategy aims to diversify its holdings. No single asset is meant to dominate the portfolio. Ark Invest is expected to adjust its weightings as the value of BitMine shares fluctuates relative to its other holdings.
BitMine shares are now the 13th-largest holding in Ark’s ARKK fund, with a 2.3% weighting. The holding is worth about $175 million as of November 7. In ARKW, BitMine occupies the 13th position as well, with a value of $52.3 million and a 2.3% weighting.
In Ark’s ARKF fund, BitMine is the 14th-largest holding. It holds a 2.4% weighting and is valued at approximately $27.4 million. Ark Invest’s decision to purchase additional shares in BitMine follows the firm’s established strategy of diversifying its portfolio to limit risk.
BitMine shares closed 9.8% lower on Thursday, with the price dropping to $37.37. Over the past five days, the stock has lost 20.1%, and over the last month, it has fallen by 42.5%. Despite the recent downturn, BitMine shares remain up 769% since June when it adopted its Ethereum treasury strategy.
The company continues to hold a large Ethereum stash. It now owns nearly 3.4 million ETH, valued at $11.2 billion. BitMine is the largest Ethereum treasury holder, a position it has maintained for months.
Ark Invest’s Support for BitMine Amid Market Struggles
Ark Invest is not alone in supporting BitMine. The company also counts Bill Miller III, DCG, Founders Fund, and Galaxy Digital as investors. Other notable backers include Kraken and Pantera, which have also provided support for the firm’s Ethereum holdings strategy.
Despite the volatility in the cryptocurrency market, BitMine remains one of the largest holders of ETH. The company’s ETH stockpile is currently the largest among public crypto treasury firms, further solidifying its position in the sector.
Ark Invest’s purchase of $9 million in BitMine shares underscores its confidence in the Ethereum-treasury firm. While BitMine’s shares have faced a sharp decline in value recently, the firm’s long-term strategy appears to remain intact. Ark’s ongoing interest in BitMine shares suggests that the firm believes in the potential of its Ethereum treasury strategy.
At present, BitMine remains a key player in the crypto sector. Ark Invest’s investment in BitMine shows continued institutional support for the firm despite recent market challenges.
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