Ark Invest Buys $25 Million in Crypto Stocks During Market Decline

TLDR

• Ark Invest purchased $13.5 million in Block shares, $7.6 million in Circle stock, and $3.86 million in Coinbase on Tuesday
• The firm also bought $2.8 million of its own bitcoin ETF, plus shares in Bullish and Robinhood
• Block stock is down 20.54% over the past month, Circle dropped 51%, and Coinbase fell 30%
• Bitcoin has fallen from its $126,000 all-time high six weeks ago to $87,948
• Cathie Wood’s firm has been steadily buying crypto stocks during the recent market downturn

Cathie Wood’s Ark Invest purchased over $25 million worth of crypto-related stocks on Tuesday as prices continue to fall across the digital asset sector. The investment firm added positions in Block, Circle, and Coinbase through several of its exchange-traded funds.

The purchases included $13.5 million in Block Inc shares, $7.6 million in Circle Internet Group stock, and $3.86 million in Coinbase shares. Ark made most of these buys through its Ark Innovation ETF.

Coinbase now represents the fund’s fourth-largest holding at $391 million, making up 5.22% of the portfolio. The fund also holds $179 million in Circle and $85.2 million in Block.

Additional Purchases

Ark Invest also added $1.52 million in Bullish stock and $878,794 in Robinhood Markets shares. The firm purchased $2.8 million worth of its own Ark-21Shares spot bitcoin ETF during Tuesday’s trading session.

The company has been adding crypto-related stocks to its portfolios over recent weeks. This strategy comes as these stocks have underperformed the broader market.

Block closed up 2.96% on Tuesday at $63.69. The stock remains down 20.54% over the past month. Block is a crypto-focused financial services and tech company co-founded by Jack Dorsey.

Stock Performance

Circle fell 3.62% on Tuesday to $70.11. The USDC issuer’s stock is 51% lower than its price one month ago. Coinbase dipped 0.72% on Tuesday and has fallen 30% over the past month.

The drop in crypto stocks matches a broader decline in the crypto market. Bitcoin currently trades at $87,948, down from its $126,000 all-time high recorded six weeks ago.

Market analysts point to thin liquidity and uncertainty over the macroeconomic environment as reasons for the decline. The cryptocurrency market has experienced steady selling pressure over recent weeks.

Ark’s bitcoin ETF purchases came as Bitcoin prices dropped more than 23% over the last 30 days. The cryptocurrency is down over 6% on a year-to-date basis.

Circle reported strong third-quarter results with $740 million in revenue and $214 million in net income. The company’s net income increased 202% year-over-year. Analysts from Baird and Bernstein have maintained bullish ratings on Circle stock.

Ark Invest has been actively buying Circle shares recently. The firm purchased $15.06 million worth of Circle stock last week alone.

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