On Wednesday, Ark Invest, led by Cathie Wood, purchased $15.6 million shares of BitMine Immersion Technologies. The new stake brings the total investment of Ark to more than $300 million. Although the crypto markets are still volatile, the acquisition demonstrates that Ark still has confidence in disruptive companies in the digital-assets market.
Ark Invest placed the investment under three ETFs, including ARK Innovation (ARKK), which purchased 227 569 shares; ARK Next Generation Internet (ARKW), which purchased 70 991 shares; and ARK Fintech Innovation (ARKF), which purchased 40 553 shares. Diversifying its holdings through spreading the purchase across its funds permits Ark to maintain an interestingly close stake in Bitmine.
Even after selling 5,721 shares last week, Ark still owns approximately $676 million of the shares of the company, Coinbase. Increasing BitMine investment by Ark Invest is viewed by analysts as an indication that the company is seeking to balance its long-term position in Coinbase with other high-conviction assets.
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In July, Ark was the first investor in BitMine, purchasing $174 million in shares in three funds in a single day. It added $17 million on August 2. This new acquisition of $15.6 million increases total BitMineholdings of Ark further, which highlights the confidence that Wood currently has regarding future growth of the company.
Ark is credited with taking daring bets in disruptive spaces such as blockchain, AI, and gene editing. BitMine’s interest can be seen as a sign of Ethereum-centric businesses, particularly as BitMine disclosed Ethereum holdings of $7.5 billion of ETH the company was one of the largest Ethereum treasury companies.
Recently, Ark has made a purchase of BitMine after other crypto-related actions. The week before, it purchased $21.2 million of Bullish stock and 16.2 million of Robinhood Markets. Ark Invest had approximately $543 million of Robinhood stock in their portfolios by Wednesday. It also brought on additional $19.2 million shares of Block this month, due to a reduction in its holding.
The fundamentals of BitMine have been boosted. It registered $2.05 million in revenue in the quarter that ended in May, a 67.5% increase with respect to a period of one year back. It increased its net profit margin by 43% during the same period, which was a good sign of higher efficiency and profitability despite the volatility in the market.
Ark Invest has been making stepwise purchases to show a long-term strategy. The company is ready to disregard short-term fluctuations with an aim at having a position in firms it perceives as critical to the future of digital assets. The risks remain part of the crypto world, but its huge buying shows that Ark trusts Ethereum-related companies and their willingness to innovate disastrously.
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