Investment firm Ark Invest, led by Cathie Wood, has substantially increased its holdings in cryptocurrency-focused companies Circle and Bullish, demonstrating continued confidence despite a broad market downturn.
The firm injected an additional $9.1 million into these blockchain ecosystem companies on Tuesday. This latest move brings Ark Invest’s total cryptocurrency-related investments over the past two weeks to more than $127 million.
These investments underscore Wood’s conviction in the disruptive potential of digital finance. This comes even as the sector faces significant macroeconomic headwinds and market volatility.
Ark acquired approximately 150,000 shares of Circle, the issuer of the USDC stablecoin, for $5.2 million. The average price per share was $34.67.
Concurrently, the firm added 200,000 shares of Bullish, a crypto trading platform backed by billionaire Peter Thiel. This transaction was valued at $3.9 million, at an average price of $19.50 per share.
These transactions were executed through Ark’s flagship funds, including the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW). These funds aim to capture growth in emerging technologies.
The capital injection occurs amid a persistent bearish streak in the cryptocurrency market. The Nasdaq Crypto Index, which tracks companies like Coinbase and Marathon Digital, has dropped 12% in the last week.
Despite the broader market decline, both Circle and Bullish shares saw slight gains on Tuesday. Circle (CRCL) closed up 1.2% at $35.10, while Bullish (BLSH) advanced 0.8% to $19.80.
Prior to Tuesday’s purchases, Ark had invested approximately $119 million since November 14 to add shares in crypto companies. These included Circle, Bullish, Coinbase, and BitMine.
Ark Invest, headquartered in St. Petersburg, Florida, manages more than $10 billion in assets. The firm focuses its investments on avant-garde companies.
The company’s strategy typically involves accumulating assets during market downturns and selling during upturns. It also aims to diversify, ensuring no single holding exceeds 10% of a fund’s portfolio.
Ark Invest’s historical approach suggests further purchases could be on the horizon if valuations remain depressed. Wood continues to challenge market trends with her long-term vision.