Bitcoin News Today: Ark Invest Sees Long-Term Gains in Crypto's Current Downturn

Ark Invest's Cathie Wood-led firm added $93 million in crypto-related equities across its exchange-traded funds this week, capitalizing on a broader market selloff that has pushed Bitcoin and key crypto stocks to multi-month lows. The firm's latest moves, detailed in trade filings and market tracking, include $13.5 million in Block Inc. shares, $7.6 million in Circle Internet Group, and $3.86 million in Coinbase through its Ark Innovation ETF (ARKK) according to filings. The purchases reflect a strategic bet on the sector's long-term potential amid thin liquidity and macroeconomic uncertainty, with Coinbase now representing the fourth-largest holding in ARKK at $391 million according to data.

The firm also expanded its crypto exposure by investing $9.9 million in BitMine Immersion Technologies and $9 million in Circle, while adding $2.8 million to its own Ark-21Shares Bitcoin ETF according to reports. These moves align with Wood's revised $1.2 million Bitcoin price target for 2030-down from $1.5 million-acknowledging stablecoins' growing role in financial systems, particularly in emerging markets according to analysis.

Despite Bitcoin's 33.65% drop from its $126,000 peak, Ark's purchases suggest a belief in structural shifts, including institutional adoption and AI-driven infrastructure growth according to market analysis.

The buying spree follows a broader rotation into AI and biotech sectors, with CoreWeave Inc.-a data center operator-receiving a $24.27 million investment after its shares fell 22% on revised revenue forecasts according to reports. CoreWeave's acquisition of Core Scientific, now valued at $9 billion, has bolstered its AI infrastructure capabilities, a focus area for Ark as global demand for computing power surges according to analysis. Meanwhile, the firm trimmed positions in tech stocks like GitLab and AMD, reallocating capital to crypto and AI-linked assets according to filings.

Market conditions remain challenging, with Bitcoin trading at $87,948 and crypto stocks underperforming. Circle's USD Coin (USDC) issuer fell 51% month-to-date, while Coinbase shares dropped 30% according to data. Ark's strategy, however, hinges on the belief that falling prices create entry points for long-term gains. The firm's Fintech Innovation ETF (ARKF) now holds $58 million in Coinbase and $244 million in Circle, reflecting a diversified approach to crypto's evolving ecosystem according to market reports.

Analysts note that Ark's moves mirror broader industry trends, with institutions increasingly viewing crypto as a strategic asset class. While short-term volatility persists, Wood's team remains optimistic about Bitcoin's 10-year trajectory, despite a 1,312% price jump required to reach her revised target according to analysis. The firm's actions underscore a conviction that crypto's foundational role in finance is accelerating, even as market dynamics shift.