Investment management firm Ark Invest, led by Cathie Wood, has made a $9 million bet on Ethereum’s long-term potential by acquiring shares in BitMine, the largest public holder of the cryptocurrency, even as BitMine’s stock price and the broader crypto market faced significant declines.
Ark Invest’s move on Thursday saw it purchase 240,507 shares of BitMine across three of its exchange-traded funds (ETFs). The transaction occurred as BitMine’s stock (BMNR) dropped nearly 10% for the day, closing at $37.37 per share.
The investment highlights Wood’s continued confidence in the innovation sector and digital assets despite market turbulence. BitMine’s shares have fallen 20.1% over the past five days and 42.5% in the last month.
BitMine, presided over by analyst Tom Lee, holds nearly 3.4 million ETH, equivalent to approximately $11.2 billion, establishing it as the world’s largest public corporate holder of Ethereum. The company recently added 82,353 ETH to its treasury and aims to eventually hold 5% of the cryptocurrency’s circulating supply, roughly 6.04 million ETH.
Ark Invest’s largest fund, the Ark Innovation ETF (ARKK), bought 167,348 BitMine shares valued at $6.3 million. The Ark Next Generation Internet ETF (ARKW) acquired 48,361 shares for $1.8 million, while the Ark Fintech Innovation ETF (ARKF) added 24,798 shares worth $927,000.
The broader cryptocurrency market experienced significant weakness concurrently with Ark’s purchase. Bitcoin fell 3.7% to trade at $100,361, and Ethereum declined 4.1% to $3,258. The total crypto market capitalization was down 2.4%.
Other companies linked to digital assets also saw their stock prices fall, including Robinhood, which dropped 10.8%, Coinbase by 7.5%, and Strategy by 7%. Bitcoin miner IREN fell 12.4%, Circle by 11.5%, and Ethereum treasury rival SharpLink lost 7.9%.
BitMine ranks as the second-largest public company by crypto treasury holdings overall. It is surpassed only by Strategy, which holds 641,205 Bitcoin, valued at about $65 billion. Other notable public Ethereum holders include SharpLink with 859,400 ETH and The Ether Machine with 496,710 ETH.
Ark Invest’s investment in BitMine fits within its strategy to diversify its portfolios, with no single holding exceeding 10% of any fund. BitMine currently represents 2.3% of the ARKK fund, making it the 13th largest asset within that specific ETF, valued at $175 million.
The firm’s long-term confidence in Ethereum’s potential underscores the strategic acquisition, even amidst a market correction. BitMine’s shares had surged 769% since late June, when its ETH accumulation strategy began.