Ethereum News Today: ARK Invest invests $182M in BitMine to target 5% ETH supply as shares fall 27%

Ark Invest, managed by CEO Cathie Wood, has acquired $182 million in BitMine Immersion Technologies shares over a week, including $15.3 million on July 29, 2025, and an additional $20 million the prior day [1]. This investment underscores the firm’s strategic focus on BitMine’s Ethereum (ETH) treasury model, which aims to accumulate ETH through energy-efficient mining operations. Multiple Ark ETFs participated in the purchase, reflecting cross-vehicle conviction in the company’s digital asset strategy [1].

The move aligns with Ark’s broader thematic investments in blockchain and crypto infrastructure, including past positions in Tesla and Coinbase. BitMine’s approach—targeting 5% of ETH’s total supply through treasury accumulation—has drawn institutional attention, as large-scale ETH accumulation could influence staking dynamics and market centralization [1]. Tom Lee, BitMine’s chairman and founder of Fundstrat, stated, “We are delighted that Cathie Wood’s ARK Invest is taking a substantial stake in BitMine as she sees the exponential opportunity ahead,” highlighting the firm’s confidence in the strategy’s long-term potential [1].

However, the share price of BitMine fell nearly 27% following the announcement, reflecting a “sell-the-news” dynamic and concerns over rapid share issuance. Despite the investment’s scale, the market reaction suggests skepticism about the firm’s ability to execute its treasury strategy amid regulatory uncertainties and volatile crypto market conditions [1]. This contrasts with Ark’s historical success in driving short-term gains through strategic purchases, such as its early investments in electric vehicle and crypto-native companies [1].

Analysts note that Ark’s position in BitMine represents one of the largest single-firm ETH exposure plays by a U.S. institution, with potential implications for Ethereum’s supply dynamics. If BitMine achieves its 5% target, it could consolidate a significant portion of ETH’s circulating supply, potentially altering staking rewards and market liquidity [1]. The move also signals growing institutional participation in crypto infrastructure, as traditional finance players seek to hedge against regulatory risks and market fragmentation.

Source: [1] Ark Invest Purchases $182M in BitMine Shares, [https://coinmarketcap.com/community/articles/6889b85b88079a5c3275daff/](https://coinmarketcap.com/community/articles/6889b85b88079a5c3275daff/)