- ARK Invest sold $148M in Coinbase and Roblox shares to buy $174M worth of Bitmine, an Ethereum treasury management company.
- Cathie Wood is pivoting toward Ethereum infrastructure investments, signaling confidence in decentralized finance growth.
ARK Invest is going through a major shift as they are twisting the firm’s fund portfolio. The company, led by Cathie Wood, made a significant portfolio rearrangement, selling off Coinbase and Roblox stock worth $148 million to purchase Ethereum treasury company Bitmine worth $174 million.
Cathie Wood Pivots Toward Ethereum Infrastructure
ARK Invest has strategically restructured its portfolio which is an indication of a new strategic direction in investing in Ethereum-based investments. To purchase large stakes in Bitmine Immersion Technologies, the investment management company sold large shares in mature crypto and gaming firms.
The restructuring was done by selling about 218,986 shares of Coinbase worth $90.5 million and 463,293 shares of Roblox worth $57.7 million. These sales were used to purchase 4.4 million shares of Bitmine worth $174 million in ARK innovation-oriented portfolios.
Bitmine is an attractive investment prospect after making a strategic shift in its business model to Ethereum treasury management operations. The company, headed by the Tom Lee of Fundstrat, saw explosive growth, following its announcement of its Ethereum transition in late June 2024.
The stock prices rose by more than 3,000% to an all-time high of $135 and then settled at the current levels. Bitmine still has stunning year-to-date returns of more than 400%, even after recent cooling, and has drawn institutional investors such as billionaire Peter Thiel.
The three fundamental ARK funds with a combined assets under management of about $6.8 billion are impacted by the portfolio changes. ARK Innovation ETF has been a leader in technology, and Tesla makes up almost 10% of the holdings, with Coinbase and Roblox still being major positions.
ARK Next Generation Internet ETF is an exchange-traded fund that specializes in cloud infrastructure and the latest technologies, with Robinhood, Coinbase, and Tesla as the main investments. The fund has a diversified exposure in Meta, Shopify, and Amazon.
The Fintech Innovation ETF has a distinct exposure to Ethereum with 3IQ Ether Staking ETF allocation, which comprises 1.15% of assets. This fund focuses on financial technology innovation by Shopify, Robinhood and other payment processing businesses.
The strategic repositioning of Wood is an indication of the wider institutional acceptance of Ethereum as a growing platform in decentralized finance and treasury management. The significant Bitmine investment will provide ARK portfolios with the opportunity to benefit in the event of Ethereum ecosystem expansion, but with diversified technology exposure.
This portfolio restructuring shows advanced portfolio management, with a combination of established crypto positions and new Ethereum infrastructure opportunities in a variety of investment vehicles.
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