When the crypto market takes a dip, some investors see a reason to panic. Others, like Cathie Wood and her team at ARK Invest, see a perfect buying opportunity. That’s exactly what happened this Wednesday, as ARK scooped up a hefty batch of shares in BitMine, a company deeply invested in Ethereum.
ARK Invest added 339,113 shares of BitMine, trading as BMNR, to its holdings. This move came after BitMine’s stock dropped almost 8% in a single trading session. The purchase cost ARK roughly $15.6 million. This recent acquisition aligns with ARK’s known strategy: buying into high-conviction assets during market corrections.
The US investment powerhouse spread these new shares across three of its popular exchange-traded funds (ETFs). These include the ARK Innovation (ARKK), ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF) funds. This information was reported by CoinDesk, citing a direct notification from ARK Invest itself.
BitMine, whose shares trade on the NYSE, wasn’t always an Ethereum player. The company once focused on mining Bitcoin. However, this year it shifted its main strategy to accumulating Ether (ETH) as its primary treasury asset. This change has paid off, turning BitMine into one of the largest cryptocurrency accumulators. With a massive 1.7 million ETH in its reserves, it now boasts the largest Ethereum treasury in the world.
ARK has been a consistent buyer of BitMine shares since July. That same month, BitMine announced its ETH holdings had topped $2 billion for the very first time. By buying BitMine, Cathie Wood’s firm gets direct exposure to Ethereum, the second-largest cryptocurrency. This is happening amidst a growing wave of institutional interest in the digital asset space. Reports from July 30th noted a similar purchase by ARK, which at that time brought their total investment in BitMine to $217.3 million within just two weeks.
ARK Shops for a Bargain
The timing of ARK’s latest purchase is telling. Ethereum (ETH) had an exciting run recently, hitting a new all-time high of $4,950 over the weekend. This price surge capped off a more than 75% gain for ETH in the last three months. To put that in perspective, Bitcoin only managed a modest 6% increase in the same period.
However, the crypto market saw a broader pullback this week. BitMine’s BMNR shares closed at $46 on Wednesday, down 7.85% for the day. This drop mirrored ETH’s own retreat, which fell 7% from its peak. Still, BitMine’s stock has been a stellar performer, jumping over 750% in the last six months, according to Google Finance.
Wood’s investment philosophy is straightforward. Her firm often sells when asset prices are high and buys when they dip. This helps rebalance the portfolios across their various investment funds. ARK’s strategy also ensures diversification. They aim to keep any single holding from making up more than 10% of a fund’s total portfolio. As of this article’s publication, ETH was trading at $4,595, according to CoinGecko data.
Image generated with AI tool, under free use license