Bitcoin News Today: ARK Bets on Blockchain Backbone as Crypto Market Crumbles

Ark Invest, the innovation-focused investment firm led by Cathie Wood, has intensified its "buy the dip" strategy in the cryptocurrency and blockchain sectors, accumulating significant stakes in companies such as Block (SQ), Circle (CRCL), Coinbase (COIN), and Bullish (BLSH) despite broader market declines. The firm's latest moves, disclosed through its ETFs, highlight its contrarian bet on digital-asset infrastructure and stablecoin platforms amid a challenging macroeconomic environment and waning institutional demand for Bitcoin.

On November 26, the ARK Innovation ETF (ARKK) alone added $13.5 million in Block shares, $7.6 million in Circle, and $3.86 million in Coinbase, according to filings. These purchases follow a weeks-long buying spree that includes $39.6 million in crypto-linked equities in a single week, with Bullish, Circle, and BitMine (BMNR) being key targets according to reports. ARK's holdings in Coinbase have now surpassed $391 million, representing 5.22% of ARKK's portfolio, while its stake in Circle has grown to $179 million according to data. The firm also expanded its position in Bullish, a crypto exchange backed by Peter Thiel, by $1.52 million according to reports.

ARK's aggressive accumulation contrasts with the broader crypto market's struggles. Bitcoin (BTC-USD) has plummeted over 30% from its October peak, trading near $87,900 as of November 21. U.S. spot Bitcoin ETFs have seen record outflows, with $3.79 billion withdrawn in November alone, including $523 million in single-day redemptions from BlackRock's IBIT. Stablecoin liquidity has also contracted, with USDC and USDT issuance declining as investors shift to fiat assets. Despite these headwinds, ARK has continued to add to its positions in crypto infrastructure firms, betting on their long-term resilience.

The firm's rationale centers on structural trends in the sector. CoreWeave's $9 billion acquisition of Core Scientific (CORZ) expanded its energy capacity and positioned it as a leader in AI computing. ARK's purchases of CoreWeave shares now exceed 788,000, signaling confidence in its ability to scale amid surging demand for AI processing power. Similarly, Circle's stablecoin ecosystem and Bullish's recent profitability - reporting a $108.3 million net profit in Q3 2025 - have drawn ARK's investment despite volatile share prices.

Cathie Wood's revised Bitcoin price forecast further underscores her conviction. While lowering her 2030 target to $1.2 million from $1.5 million due to stablecoins encroaching on Bitcoin's utility in emerging markets, she remains bullish on the asset's long-term trajectory. This adjustment reflects broader industry shifts, including increased adoption of tokenized assets and regulatory clarity in the U.S., which ARK views as catalysts for crypto's mainstream integration according to industry analysis.

However, ARK's strategy faces risks. The crypto market's fourth "death cross" technical pattern in 2025 - a bearish indicator - has intensified pessimism, while leveraged traders have suffered $1.8 billion in liquidations in the past week. Additionally, CoreWeave's expanding debt and shrinking operating margins raise short-term concerns about its financial health.

ARK's actions highlight a divergence between institutional investors and major ETF providers. While BlackRock and others have seen massive redemptions, ARK is positioning itself to capitalize on discounted valuations in crypto infrastructure. Whether this approach pays off will depend on the sector's ability to stabilize and deliver on long-term growth expectations.