TLDR
- Cathie Wood’s ARK Invest purchased $1.3 million in Coinbase, $8.7 million in Circle, and $6 million in BitMine stock on February 3
- ARK bought 135,131 shares of its own Bitcoin ETF and 125,218 shares of Bullish exchange during market downturn
- Bitcoin fell below $70,000 on February 5, dropping 7.8% in one day and reaching its lowest point since November 2024
- Coinbase represents 5.55% of ARK’s blockchain fund and 4.29% of the innovation fund as of February 5
- The crypto market saw over $750 million in liquidations with sentiment indicators showing extreme fear
Cathie Wood is buying crypto stocks while prices fall. The ARK Invest founder purchased millions in cryptocurrency companies this week. Bitcoin hit its lowest price in three months during the buying period.
ARK Invest made several major purchases on February 3. The firm bought stock in Coinbase, Circle, BitMine Immersion Technologies, and Bullish. Wood spent $1.3 million on 3,510 shares of Coinbase.
Circle stock received $8.7 million from ARK investments across multiple funds. The ARKK fund bought 34,342 shares while the ARKF fund purchased 8,536 shares. Circle runs the USDC stablecoin platform.
BitMine received $6 million from Wood’s firm through the purchase of 145,488 shares. The company mines Bitcoin but holds Ethereum as a treasury asset. Tom Lee chairs the company board.
Wood bought 125,218 shares of Bullish for $3.5 million. Bullish runs a regulated crypto exchange backed by Block.one. Peter Thiel put money into the company through his investment firm Thiel Capital.
ARK purchased 135,131 shares of the ARK 21Shares Bitcoin ETF. The total value came to $3.4 million. This ETF tracks Bitcoin’s price directly.
ARK Adds More Shares on February 4
Wood continued buying the next day. The ARK Innovation ETF added 83,094 shares of Bullish. The same fund purchased 14,868 shares of Circle.
Coinbase makes up 5.55% of the ARK Blockchain & Fintech Innovation ETF. It ranks as the third biggest holding. Robinhood takes up 4.08% of the fund.
Circle holds 3.34% of the blockchain fund while Bullish accounts for 2.19%. BitMine represents 2.10% of the portfolio. The ARK Innovation ETF holds smaller positions in these stocks.
Crypto Market Enters Extreme Fear
The purchases came as crypto markets crashed. Bitcoin fell below $70,000 on February 5. The top cryptocurrency lost 7.8% in 24 hours.
Bitcoin traded at $67,753.29 when reported. This drop marked the worst crash since early November 2024. The global crypto market value fell to $2.59 trillion.
Sentiment indicators showed extreme fear in the market. Liquidations reached $750 million across all crypto positions. Bitcoin touched $73,000 briefly before finding support.
Coinbase stock dropped 4.36% to close at $179.66 on the purchase day. Circle shares fell 4.59% to $56.16. BitMine declined 1.97% to close at $22.35.
Robinhood stock has dropped 40% from its yearly high. The stock entered oversold levels based on technical charts. ARK purchased around $32.7 million worth of Robinhood shares in total.
Bullish stock fell 3.93% to $27.64. The ARK Bitcoin ETF dropped 1.97% to $25.36. All crypto-related stocks traded lower this week.
Tight U.S. liquidity conditions hurt high-risk investments. Investors dealt with ETF losses and weak market confidence. The sell-off hit cryptocurrency stocks as Bitcoin dropped below $80,000 earlier in the week.
By February 5, Coinbase ranked as the fifth largest holding in ARKK at 4.29%. Robinhood held 3.85% while Circle accounted for 2.41%. BitMine and Bullish rounded out the top crypto positions at 2.03% and 1.52%.
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