On Monday, ARK Invest acquired shares of major crypto companies amid an extended slump in Coinbase, Bullish, and Circle. The firm’s trade filing shows it bought $17 million of BitMine, $16.26 million of Coinbase, $9.9 million of CoreWeave, and $10.8 million of Circle Internet Group shares through its ETFs ARKK, ARKW, and ARKF.
It also acquired $5.94 million in Block Inc., $5.2 million in Bullish, and $1.24 million in its Ark-21Shares Bitcoin ETF.
Ark Investments made a similar investment in Coinbase two weeks earlier. Cathie Wood, CEO of Ark Invest’s firm, has been confidently buying the COIN stock despite the 40% drop from its highs of $420.
Market expert The Great Mattsby noted that Coinbase (COIN) stock has been consolidating between its 50-week and 100-week moving averages over the past month. The price action remains uncertain in the absence of a clear directional bias.
Ark Invest took advantage of the drawdowns to buy company shares
Ark Invest’s crypto picks had already been on a downward trend before Monday. On Monday, BitMine fell 11.22% to close at $30.95, Coinbase dropped 6.37% to $250.42, and Circle declined 9.60% to $75.46. Block fell 1.13%, Bullish 2.55%, and Ark’s spot Bitcoin ETF declined 4.91%.
The cryptocurrency market, led by Bitcoin, also dipped on Monday. Bitcoin decreased 4.08% to $85,799, with Ether down 5.74% to $2,931.
Cathie Wood stated earlier this month that the company has been examining deflationary trends associated with new technology and predicts a significant decline in inflation in the year ahead.
The firm has a history of investing during declines rather than during uptrends, using extended crypto stock selloffs to boost its holdings even as prices fall. A large share of ARK’s investments is in crypto, including $609M in Coinbase, $323M in Circle Internet Group, $275M in BitMine Immersion Technologies, $194M in Bullish, and $140M in CoreWeave. Its recent buying supplemented existing stakes.
Ark Invest offloaded roughly 124,867 Tesla shares
However, across ARK Innovation and ARK Next Generation Internet ETFs, Ark Invest also sold 124,867 Tesla shares, generating about $59.35 million as the stock closed at $475.31. The selloff comes as Tesla is advancing its autonomous driving plans.
Billionaire Elon Musk asserted they’ll start Robotaxi tests in Austin. However, despite record EV deliveries, analysts are questioning the significance of these figures for the stock, highlighting a shift in investor priorities.
Tesla’s value is becoming more detached from actual electric vehicle deliveries, a Barclays analyst is predicting, because fourth-quarter results will be soft. According to the analyst’s estimation, the company is being viewed more as a tech company than a traditional carmaker.
That forecast aligns with Musk’s belief that Tesla’s long-term value is driven by its technology — specifically, Full Self-Driving and the Optimus humanoid robot, which he estimates may account for up to 80 percent of the company’s future value. As it currently stands, some investors are estimating decelerating growth for vehicle deliveries, predicting a dip of about 7% in 2025 and a rise of between 0% and 5% in 2026 that falls short of broader market expectations.
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