Cathie Wood's Ark Invest Books Profits On Hot AI Stock Palantir, Sells Bitcoin ETF Shares As BTC Starts 2025 On A Positive Note

Cathie Wood's Ark Invest has been making waves in the investment world with its strategic moves in the AI and crypto markets. In a recent development, Ark Invest sold shares of the hot AI stock Palantir Technologies (PLTR) and Bitcoin ETF shares as Bitcoin (BTC) started 2025 on a positive note. Let's delve into the details of these transactions and their implications for Ark Invest's overall portfolio strategy.



Ark Invest's Sale of Palantir Shares
On Friday, November 22, Ark Invest sold 73,021 shares of Palantir Technologies (PLTR) through the ARK Innovation ETF (ARKK). The sale was valued at approximately $4.48 million, based on the closing price of $25.88 on the same day. This move aligns with Ark's recent trend of reducing its position in the hot AI stock. Despite the sale, Palantir remains the fifth-largest holding in the ARKK ETF, with a 5.29% weightage, and the fund still holds PLTR stock worth $337.13 million.

Palantir's recent performance and growth prospects align with Ark Invest's investment thesis in several ways. First, Palantir is a pure AI play, focusing on data analysis and AI-driven solutions, which is a key area of interest for Ark Invest. The company's products, such as Palantir Gotham, Palantir Foundry, and Palantir Apollo, are built around AI and data analysis, making it a strong fit for Ark's portfolio.

Second, Palantir's commercial business has seen impressive growth. In Q3 2023, commercial revenue accelerated by 54% year-over-year and 13% quarter-over-quarter. This growth signals real demand for Palantir's AI-driven data analysis solutions, which aligns with Ark's focus on disruptive technologies and growth stocks.

Third, Palantir's revenue and margins are growing simultaneously, indicating strong execution and a clear winning strategy. The company's ability to enter businesses, secure deals, and streamline expenses has led to this simultaneous growth, which is a positive sign for investors.

Fourth, Palantir's inclusion in the S&P 500 index in 2024 further validates the company's growth prospects and institutional acceptance. This inclusion could potentially boost Palantir's stock as it gains wider exposure to investors and as shares are accumulated to be included in index funds that mirror the S&P 500.

Ark Invest's Sale of Bitcoin ETF Shares
On the same day, Ark Invest sold 18,476 shares of the ARK 21Shares Bitcoin ETF (ARKB) through the ARK Next Generation Internet ETF (ARKW). This move comes as Bitcoin crossed the $100,000 mark for the first time, and Ark Invest took some profits from the crypto ETF. The value of the trade, calculated from the last closing price of $100,000, is approximately $1.85 million.

Ark Invest's recent activity in the crypto market, including the sale of Bitcoin ETF shares, aligns with their overall investment approach, which focuses on disruptive innovation and long-term growth. By participating in the crypto market through ETFs, Ark Invest is positioning itself to benefit from the growing institutional interest in cryptocurrencies. Additionally, Ark Invest's focus on AI stocks, such as Palantir, demonstrates their commitment to staying ahead of the curve in rapidly evolving sectors.



In conclusion, Ark Invest's sale of Palantir shares and Bitcoin ETF shares reflects their strategic approach to managing risk and capitalizing on market opportunities. By selling shares of Palantir, Ark Invest can lock in profits from a stock that has significantly appreciated, while reinvesting the funds into other promising AI stocks or sectors. Similarly, by selling Bitcoin ETF shares, Ark Invest can take profits from the crypto market's rally and potentially reallocate capital to other investment opportunities. These moves align with Ark Invest's overall portfolio strategy and risk management approach, as they seek to maintain a diversified portfolio while still benefiting from the growth of the AI and crypto industries.