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Cathie Wood Doubles Down on Crypto: Ark Buys $28 Million in Bitmine and Coinbase While Trimming Shopify

MarketDash Editorial Team
12 hours ago
Ark Invest made aggressive moves in the crypto space Wednesday, purchasing nearly $28 million in Bitmine and Coinbase shares as Bitcoin and Ethereum continued their sharp decline. Meanwhile, the firm trimmed its Shopify position despite the e-commerce platform's record holiday sales.

Cathie Wood isn't backing down from crypto. While most investors watched Bitcoin and Ethereum bleed on Wednesday, Ark Invest was busy scooping up shares in companies tied to the digital asset space. The firm executed several notable trades, with the most eye-catching being a nearly $28 million combined bet on Bitmine Immersion Technologies (BMNR) and Coinbase Global (COIN).

This isn't exactly contrarian investing if you've been following Wood's playbook lately. It's more like doubling down when everyone else is heading for the exits. And given the state of crypto markets right now, that takes either conviction or a very different view of where things are headed.

The Big Bitmine Bet

Ark's largest move on Wednesday was a substantial purchase of Bitmine Immersion shares spread across three ETFs: ARK Blockchain & Fintech Innovation ETF (ARKF), ARK Innovation ETF (ARKK), and ARK Next Generation Internet ETF (ARKW). The firm acquired 478,125 shares valued at approximately $14.01 million based on the closing price of $29.32.

Now, Bitmine is an interesting case. The company is led by Tom Lee and functions as an Ethereum treasury firm, holding a massive 3.97 million ETH—that's over 3.2% of the entire global supply. Total holdings clock in at $13.3 billion, and the company has publicly stated it wants to own 5% of all Ethereum in existence.

The problem, of course, is that Bitmine's stock has been under serious pressure as Ethereum (ETH) prices have declined. When you're essentially a leveraged bet on Ethereum, you feel every price swing acutely. And Wednesday was not kind to crypto investors. Bitcoin (BTC) dropped about 2% to hover near $86,000, while Ethereum slid over 4% to around $2,826. More than $530 million was liquidated across the crypto market in just 24 hours, and sentiment indicators showed markets firmly in "Extreme Fear" territory.

Investors were on edge waiting for the CPI report, and both stocks and cryptocurrencies sold off in tandem. But Wood apparently saw an opportunity in the chaos. And this wasn't her first Bitmine purchase of the week—on Monday, she had already picked up 550,404 shares valued at $17.03 million, along with positions in Bullish (BLSH), Block, and shares of her own ARK21Shares Bitcoin ETF.

More Coinbase, Because Why Not

Ark also increased its stake in Coinbase (COIN), acquiring 24,198 shares through ARKF, ARKK, and ARKW. This purchase is valued at approximately $5.9 million.

The timing here is interesting. On Wednesday, Coinbase announced new features including stock trading and tokenized trading capabilities. These additions could broaden the platform's appeal beyond pure crypto enthusiasts and potentially drive future growth. Whether that's enough to offset the broader headwinds facing crypto exchanges remains to be seen, but Ark is clearly betting that Coinbase's diversification efforts will pay off.

Bullish on Bullish

Ark's crypto shopping spree continued with a purchase of 209,886 shares of Bullish (BLSH) across ARKF, ARKK, and ARKW, valued at approximately $8.8 million.

Bullish, backed by Peter Thiel, is a cryptocurrency trading platform that recently reported strong third-quarter earnings. In November, the company posted revenue of $76.5 million, beating estimates, while adjusted earnings of 10 cents per share met expectations. Management said the momentum carried into the fourth quarter and guided subscription and services revenue between $47 million and $53 million, though they acknowledged a year-over-year decline in digital asset sales.

It's worth noting that Bullish is managing to grow its subscription and services business even as transaction volumes fluctuate with crypto prices. That recurring revenue base could provide some stability if crypto markets remain choppy.

Out With Shopify

Not everything was a buy on Wednesday. Ark reduced its holdings in Shopify (SHOP), selling 65,302 shares across ARKF, ARKK, and ARKW, valued at approximately $10.6 million.

This one's a bit puzzling on the surface. Shopify just reported a record $14.6 billion in sales during the Black Friday-Cyber Monday weekend. The company's fiscal third-quarter results showed revenue growth of 32% year over year to $2.84 billion, beating estimates, while adjusted earnings per share of 34 cents met expectations.

Analysts have been bullish too. BMO Capital maintained an Outperform rating and raised its price target to $190, while Morgan Stanley reiterated an Overweight rating and lifted its target to $192. By most measures, Shopify looks like it's executing well.

But here's the thing: Shopify's valuation has been running hot. According to market data, Shopify has a Value ranking in the 5th percentile compared to peers like Amazon. That suggests the stock is priced for perfection, and Ark may simply be taking profits after a strong run while redeploying capital into beaten-down crypto plays that offer more upside potential.

Other Notable Moves

Beyond the headline trades, Ark made several other portfolio adjustments worth noting:

Reading the Tea Leaves

So what's the strategy here? It looks like Wood is rotating out of high-valuation growth stocks that have had strong runs—like Shopify, Roku, and DraftKings—and moving aggressively into crypto-related assets that have been pummeled. It's classic buy-low, sell-high thinking, assuming you believe crypto has bottomed or is close to it.

The Bitmine position is particularly interesting because it's essentially a leveraged bet on Ethereum's long-term value. If you think ETH will recover and potentially reach new highs, owning a company that controls 3.2% of global supply and wants to own 5% is a compelling way to express that view. Of course, if Ethereum continues to struggle, Bitmine's stock will likely feel even more pain.

Wood has never been one to follow the crowd, and these trades are consistent with her long-term conviction in disruptive technologies. Whether crypto rebounds from here or faces further pressure will determine whether Wednesday's buying spree looks prescient or premature. But one thing's certain: Ark isn't sitting on the sidelines waiting for clarity. They're making their bet now, while fear dominates sentiment and prices are down.

Back to News

Cathie Wood Doubles Down on Crypto: Ark Buys $28 Million in Bitmine and Coinbase While Trimming Shopify

MarketDash Editorial Team
12 hours ago
Ark Invest made aggressive moves in the crypto space Wednesday, purchasing nearly $28 million in Bitmine and Coinbase shares as Bitcoin and Ethereum continued their sharp decline. Meanwhile, the firm trimmed its Shopify position despite the e-commerce platform's record holiday sales.

Cathie Wood isn't backing down from crypto. While most investors watched Bitcoin and Ethereum bleed on Wednesday, Ark Invest was busy scooping up shares in companies tied to the digital asset space. The firm executed several notable trades, with the most eye-catching being a nearly $28 million combined bet on Bitmine Immersion Technologies (BMNR) and Coinbase Global (COIN).

This isn't exactly contrarian investing if you've been following Wood's playbook lately. It's more like doubling down when everyone else is heading for the exits. And given the state of crypto markets right now, that takes either conviction or a very different view of where things are headed.

The Big Bitmine Bet

Ark's largest move on Wednesday was a substantial purchase of Bitmine Immersion shares spread across three ETFs: ARK Blockchain & Fintech Innovation ETF (ARKF), ARK Innovation ETF (ARKK), and ARK Next Generation Internet ETF (ARKW). The firm acquired 478,125 shares valued at approximately $14.01 million based on the closing price of $29.32.

Now, Bitmine is an interesting case. The company is led by Tom Lee and functions as an Ethereum treasury firm, holding a massive 3.97 million ETH—that's over 3.2% of the entire global supply. Total holdings clock in at $13.3 billion, and the company has publicly stated it wants to own 5% of all Ethereum in existence.

The problem, of course, is that Bitmine's stock has been under serious pressure as Ethereum (ETH) prices have declined. When you're essentially a leveraged bet on Ethereum, you feel every price swing acutely. And Wednesday was not kind to crypto investors. Bitcoin (BTC) dropped about 2% to hover near $86,000, while Ethereum slid over 4% to around $2,826. More than $530 million was liquidated across the crypto market in just 24 hours, and sentiment indicators showed markets firmly in "Extreme Fear" territory.

Investors were on edge waiting for the CPI report, and both stocks and cryptocurrencies sold off in tandem. But Wood apparently saw an opportunity in the chaos. And this wasn't her first Bitmine purchase of the week—on Monday, she had already picked up 550,404 shares valued at $17.03 million, along with positions in Bullish (BLSH), Block, and shares of her own ARK21Shares Bitcoin ETF.

More Coinbase, Because Why Not

Ark also increased its stake in Coinbase (COIN), acquiring 24,198 shares through ARKF, ARKK, and ARKW. This purchase is valued at approximately $5.9 million.

The timing here is interesting. On Wednesday, Coinbase announced new features including stock trading and tokenized trading capabilities. These additions could broaden the platform's appeal beyond pure crypto enthusiasts and potentially drive future growth. Whether that's enough to offset the broader headwinds facing crypto exchanges remains to be seen, but Ark is clearly betting that Coinbase's diversification efforts will pay off.

Bullish on Bullish

Ark's crypto shopping spree continued with a purchase of 209,886 shares of Bullish (BLSH) across ARKF, ARKK, and ARKW, valued at approximately $8.8 million.

Bullish, backed by Peter Thiel, is a cryptocurrency trading platform that recently reported strong third-quarter earnings. In November, the company posted revenue of $76.5 million, beating estimates, while adjusted earnings of 10 cents per share met expectations. Management said the momentum carried into the fourth quarter and guided subscription and services revenue between $47 million and $53 million, though they acknowledged a year-over-year decline in digital asset sales.

It's worth noting that Bullish is managing to grow its subscription and services business even as transaction volumes fluctuate with crypto prices. That recurring revenue base could provide some stability if crypto markets remain choppy.

Out With Shopify

Not everything was a buy on Wednesday. Ark reduced its holdings in Shopify (SHOP), selling 65,302 shares across ARKF, ARKK, and ARKW, valued at approximately $10.6 million.

This one's a bit puzzling on the surface. Shopify just reported a record $14.6 billion in sales during the Black Friday-Cyber Monday weekend. The company's fiscal third-quarter results showed revenue growth of 32% year over year to $2.84 billion, beating estimates, while adjusted earnings per share of 34 cents met expectations.

Analysts have been bullish too. BMO Capital maintained an Outperform rating and raised its price target to $190, while Morgan Stanley reiterated an Overweight rating and lifted its target to $192. By most measures, Shopify looks like it's executing well.

But here's the thing: Shopify's valuation has been running hot. According to market data, Shopify has a Value ranking in the 5th percentile compared to peers like Amazon. That suggests the stock is priced for perfection, and Ark may simply be taking profits after a strong run while redeploying capital into beaten-down crypto plays that offer more upside potential.

Other Notable Moves

Beyond the headline trades, Ark made several other portfolio adjustments worth noting:

Reading the Tea Leaves

So what's the strategy here? It looks like Wood is rotating out of high-valuation growth stocks that have had strong runs—like Shopify, Roku, and DraftKings—and moving aggressively into crypto-related assets that have been pummeled. It's classic buy-low, sell-high thinking, assuming you believe crypto has bottomed or is close to it.

The Bitmine position is particularly interesting because it's essentially a leveraged bet on Ethereum's long-term value. If you think ETH will recover and potentially reach new highs, owning a company that controls 3.2% of global supply and wants to own 5% is a compelling way to express that view. Of course, if Ethereum continues to struggle, Bitmine's stock will likely feel even more pain.

Wood has never been one to follow the crowd, and these trades are consistent with her long-term conviction in disruptive technologies. Whether crypto rebounds from here or faces further pressure will determine whether Wednesday's buying spree looks prescient or premature. But one thing's certain: Ark isn't sitting on the sidelines waiting for clarity. They're making their bet now, while fear dominates sentiment and prices are down.