Key Takeaways
- ARK Invest has bought 4.4 million Bitmine shares worth around $174 million.
- The Bitcoin mining firm recently pivoted to an Ethereum treasury strategy.
- ARK offloaded some Coinbase stock to fund the purchases, but held on to Tesla.
ARK Invest has made a move into Ethereum treasury stocks, acquiring positions in Bitmine Immersion Technologies via its Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF).
The asset manager has also sold shares in Coinbase, Robinhood, and Block.Inc, and maintained its large stakes in Tesla.
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ARK Backs Bitmine’s Ethereum Treasury Strategy
Under the leadership of Fundstrat co-founder Tom Lee, Bitmine is among a crop of businesses vying to become Ethereum’s MicroStrategy.
The Bitcoin mining company hasn’t gone as far as its industry peer, Bit Digital, which plans to wind down its Bitcoin mining operations and shift its entire treasury balance to ETH.
However, with $250 million in fresh capital to play with, Bitmine has one of the most well-funded Ethereum treasury operations.
With founder Cathie Wood increasingly bullish on Ethereum, between them, ARK funds bought 4.4 million Bitmine shares worth around $174 million. BMNR now comprises around 1.5% of the three ETFs’ portfolios.
Sells Coinbase and Robinhood, Keeps Tesla
To fund its Bitmine purchases, ARK has reallocated capital from several existing investments, including Block.Inc., Coinbase, Robinhood, and Roblox.
ARK’s largest single divestment was Coinbase, with its three funds selling 218,986 shares worth around $90.5 million.
ARKK and ARKW have maintained their sizable positions in Tesla following a period of accumulation. As of July 22, TSLA remained the top holding for both funds, with a weighting of 9.78% and 7.61% respectively.
With its focus on fintech, ARKF’s top holdings are Shopify, Robinhood, Coinbase, and Circle.
All three ARK funds bought shares in the stablecoin issuer on its first day of trading, some of which they flipped just two weeks later for over a 400% profit.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
