Cathie Wood Increases Investment by $93M in Crypto Stocks — Including Circle, Coinbase, Block, and Bullish

Summary:
Cathie Wood’s ARK Invest has made significant new investments in several cryptocurrency-related stocks, accumulating over $93 million in a single day. The firm's strategy focuses on buying during market declines, despite recent volatility in the crypto sector.

Key Takeaways

ARK Invest purchased over $93 million in crypto stocks recently, continuing its trend of investing in a declining market.
Notable acquisitions include Block, Circle, Coinbase, and Bullish, indicating strong confidence in these companies despite recent losses.
ARK’s strategy focuses on long-term growth, even during periods of market turbulence, which has historically yielded high returns but also faced substantial downturns.

Cathie Wood Loads Up $93M in Crypto Stocks — Circle, Coinbase, Block & Bullish

ARK Invest Boosts Crypto Holdings Amid Market Declines

This week, ARK Invest, led by Cathie Wood, has ramped up its presence in the cryptocurrency sector by adding more digital asset-linked stocks to its portfolio. On Tuesday alone, the investment firm spent over $93 million, continuing a month-long trend of buying during market weaknesses as crypto equities face challenges in recovering from significant losses.

Continued Investments in Digital Assets

On Tuesday, ARK disclosed new purchases totaling $13.5 million in Block, $7.6 million in Circle Internet Group, and $3.86 million in Coinbase. Additionally, ARK acquired $1.52 million of Bullish, $878,794 in Robinhood, and invested another $2.8 million in its ARK-21Shares Bitcoin ETF.

Most of these transactions were funneled through ARK’s flagship Innovation ETF, where Coinbase currently stands as the fourth-largest holding at $391 million, making up 5.22% of the portfolio. Furthermore, ARK holds $179 million in Circle (2.39% of the fund) and $85.2 million in Block.

ARK’s renewed investments come as crypto-related equities experience sharp monthly declines and reduced market liquidity. Over the last month, Block has decreased by 20.54%, Circle has fallen by 51.07% from late October levels, and Coinbase has dipped by 30%. This downward trend follows a similar pattern seen in digital assets, with Bitcoin now priced under $88,000 after reaching $126,000 just six weeks ago.

ARK Invest Maintains Strategy of Buying the Dips

The recent downturn has not deterred ARK Invest’s strategy of investing in declining markets. On November 20, the firm executed one of its largest single-day allocations for the month, spending $42 million on Bullish, Circle, and BitMine Immersion Technologies. ARK purchased nearly $17 million of Bullish amid a 3.6% drop, acquired $15 million of Circle during a near 9% decline, and invested about $7.6 million in BitMine as it fell sharply.

Earlier in the month, on November 4, ARK also bought $11.98 million more of Bullish, bringing its total investment in the exchange to over $209 million since its August listing. In addition to its crypto investments, ARK has continued its dip-buying strategy across other sectors, increasing holdings in companies like CoreWeave after a nearly 45% drop and resuming purchases of Nvidia following a post-earnings decline.

The Uncertain Future of ARK Invest’s Crypto Bets

The effectiveness of ARK’s aggressive buying approach remains to be seen. Historically, ARK has employed a high-risk, long-term strategy focused on transformative technologies, which delivered impressive returns in 2020 but faced a stark reversal in 2021 and 2022, with ARKK falling nearly 67%. In recent months, ARK has posted negative returns and experienced substantial outflows.

Notably, ARK’s portfolio, now valued at $14.7 billion, aims to concentrate on innovative and disruptive companies. Unlike most institutional funds, which emphasize stability and diversification, ARK’s unconventional approach involves a concentrated portfolio that tolerates extended drawdowns. This style diverges from traditional valuation techniques that prioritize cash flow and near-term earnings visibility.

Wood’s investment interest in crypto assets dates back to as early as 2015, starting with the Grayscale Bitcoin Trust. The firm invested nearly $250 million in Coinbase during its public debut in 2021 and launched a spot bitcoin ETF in 2024. Since then, crypto-related stocks have consistently remained among ARK's most actively traded positions.