Cathie Wood’s ARK Invest is making a bold strategic pivot, significantly boosting its exposure to Ethereum by investing in BitMine Immersion Technologies. This move signals a strong and renewed confidence in the long-term potential of the second-largest cryptocurrency, even as the firm rebalances its portfolio by divesting from other holdings.
ARK's Deep Dive into Ethereum Through BitMine
ARK Invest, under the leadership of Cathie Wood, has substantially increased its crypto-linked equity holdings by acquiring $4.46 million worth of shares in BitMine Immersion Technologies (BMNR) across three of its exchange-traded funds. This investment highlights ARK’s conviction in Ethereum, given that BitMine is renowned as the largest corporate holder of ETH, with an estimated 1.78 million to over 2 million tokens, representing about 1.7% of the total supply. BitMine's impressive track record, including a massive $628 million gain from an earlier $20 million stake in Eightco Holdings following a Worldcoin treasury announcement, further solidifies its appeal as a powerhouse in the crypto-treasury sector.
A Strategic Portfolio Rebalance
The investment in BitMine is part of a broader strategic rebalancing within ARK Invest's portfolio. Concurrently, the firm has notably trimmed its position in Robinhood Markets, selling nearly 44,000 shares worth approximately $5.1 million from its ARK Next Generation Internet ETF (ARKW), despite Robinhood's recent surge after being added to the S&P 500. This divestment, alongside a smaller reduction in Teradyne shares, underscores a clear shift in investment focus. ARK Invest’s substantial acquisition in BMNR, described as a "vote of confidence" in BitMine’s Ethereum treasury strategy, emphasizes its strategic pivot towards capitalizing on Ethereum’s anticipated growth and long-term value.
