ARK Invest Buys Crypto Stocks, Bets on Institutional Adoption

ARK Invest, the investment firm led by Cathie Wood, has resumed its aggressive buying of crypto-linked equities, adding $5.8 million in BitMine and $2.9 million in Bullish shares on Friday as both stocks faced heavy selling. The purchases were made across several of the firm's exchange-traded funds, including the ARK Fintech Innovation ETF (ARKF), ARK Next Generation Internet ETF (ARKW), and ARK Innovation ETF (ARKK), according to the firm's daily trade disclosures.

The move marks the latest phase in ARK's broader crypto-focused strategy, which includes a recent $46 million investment in Circle (CRCL) shares as the stablecoin issuer's stock dipped below $90. This follows a similar accumulation of BitMine shares on Thursday, with ARK acquiring 242,347 shares for $8.9 million as the stock traded below $37. The firm has also been offloading Tesla stock, redirecting capital toward what it views as undervalued assets in the crypto and fintech sectors.

The purchases of BitMine and Bullish came as both stocks closed with double-digit declines. BitMine fell 6% to $34.40, while Bullish dropped 6.19% to $38.48. However, both stocks showed slight recoveries in after-hours trading. ARK's renewed interest in these companies aligns with its thesis that crypto-related equities will benefit from increased institutional adoption and regulatory clarity, despite the sector's inherent volatility.

The firm's strategy has drawn attention as it navigates a market environment where crypto-linked stocks remain highly sensitive to macroeconomic shifts. For instance, Robinhood's Q3 FY25 earnings highlighted that 37% of its transaction revenue came from crypto trading, underscoring the sector's cyclical nature. ARK's approach, however, aims to mitigate such risks by diversifying into a range of crypto-related equities and fintech innovations.

Beyond BitMine and Bullish, ARK has also been expanding its exposure to other crypto infrastructure players. BitMine recently announced a leadership change, with Chi Tsang taking over as CEO after the company's Ether treasury surpassed $11 billion. The firm's strategic shifts, including its focus on institutional-grade infrastructure, align with ARK's broader vision of a maturing crypto ecosystem.

The latest purchases come amid broader market speculation about a potential rebound in crypto assets. While Bitcoin and other major cryptocurrencies have faced regulatory headwinds, ARK's bets suggest confidence in long-term adoption. The firm's track record of large-scale crypto acquisitions-such as its $46 million Circle purchase-highlights its willingness to capitalize on market dips, even as critics question the sustainability of such strategies in a volatile environment.