Cathie Wood's Ark Invest purchased $38.7 million worth of shares in crypto companies on Thursday as the broader cryptocurrency market extended its losses, marking the second consecutive day of aggressive accumulation totaling nearly $80 million - a bold contrarian bet that institutional conviction in digital assets remains intact despite mounting headwinds.
The St. Petersburg, Florida-based investment manager added to its holdings in Coinbase, Bitmine Immersion Technologies, Circle Internet Group, and Bullish even as the CoinDesk 20 Index plunged over 4.7% and crypto-related equities suffered sharp declines. The purchases echo Wednesday's activity, when Ark bought a combined $39.6 million of the same companies, signaling Wood's unwavering belief in the long-term potential of crypto infrastructure despite near-term volatility.
Ark Invest's most prominent purchase targeted Coinbase, with the firm acquiring 42,419 shares worth $10.1 million based on Thursday's closing price of $238.16 - representing a 7.44% decline on the day. The move demonstrates Wood's continued confidence in the largest U.S. cryptocurrency exchange despite regulatory uncertainties and deteriorating market conditions that have pressured crypto-related equities throughout November.
Coinbase has been a recurring target for Ark's accumulation strategy. Earlier this month, Ark purchased $3 million worth of Coinbase stock alongside $3.1 million of Circle shares across two of its ETFs, adding to positions the firm has strategically built and trimmed over the past two years based on valuation opportunities.
The aggressive buying comes as Coinbase's valuation has fluctuated dramatically in 2024, with the stock experiencing both significant rallies and sharp corrections. Ark's current strategy suggests Wood sees compelling value at current levels, betting that Coinbase will benefit from increased institutional adoption and clearer regulatory frameworks under the Trump administration.
Mining and Stablecoin Infrastructure in Focus
Beyond Coinbase, Ark made substantial investments in emerging crypto infrastructure companies. The Cathie Wood-led firm bought 380,244 shares in Bitmine Immersion Technologies worth just under $10 million, according to Friday's emailed disclosure.
The purchase came despite BMNR shares dropping by more than 10% to close at $26.02 - the lowest point since the company adopted an Ethereum-focused digital treasury strategy in June. The steep decline didn't deter Wood from viewing the mining technology provider as an attractive long-term opportunity, particularly as the company positions itself at the intersection of cryptocurrency mining infrastructure and emerging proof-of-stake ecosystems.
Ark also added 264,534 Bullish shares and 134,650 Circle Internet Group shares, worth approximately $9.7 million and $9 million respectively. Circle, the issuer of USDC stablecoin, fell 4% on Thursday to $66.93, while Bullish - a crypto exchange backed by billionaire tech investor Peter Thiel whose parent company also owns CoinDesk - held relatively steady with a 0.3% rise to $36.30.
Strategic Shift Toward Crypto Infrastructure
Ark's concentrated buying spree represents a notable strategic pivot. Recent filings reveal the firm has been reducing positions in traditional technology giants like Tesla and AMD while dramatically increasing exposure to crypto-native companies. The firm sold 71,638 Tesla shares in early November despite holding the electric vehicle maker as its primary investment since 2018.
Last week, Ark offloaded 87,051 AMD shares for $22 million just two days after the chip manufacturer announced plans to expand its AI and data center operations. The investment manager also disposed of 572,735 Pinterest shares for approximately $15.6 million and 12,083 Regeneron shares for about $8.2 million - moves that freed up capital for increased crypto allocations.
Wood explained that financial markets are struggling because liquidity is tightening, drawing comparisons to Trump's previous presidential term with particular emphasis on 2017, 2018, and 2019. Her assessment suggests the current environment favors selective accumulation of high-conviction positions in transformative technologies rather than broad market exposure.
Buying the Dip or Catching a Falling Knife?
Ark's aggressive accumulation during the crypto market selloff represents a classic contrarian play—one that could either prove prescient or premature depending on how market conditions evolve. The firm has invested over $40 million in digital-asset-linked publicly traded companies in recent trading sessions, reflecting strong conviction in the sector's long-term growth potential.
The strategy aligns with Wood's public statements positioning cryptocurrencies as essential components of the future financial system. She has consistently argued that blockchain technology and cryptocurrency adoption will continue reshaping financial markets, with publicly traded crypto companies providing a bridge between emerging digital asset innovation and traditional capital markets.
By diversifying holdings across Coinbase, Circle, Bullish, and Bitmine, Ark is positioning itself to benefit from multiple facets of the crypto economy: exchange trading volumes, payment processing, stablecoin infrastructure, and mining technology solutions. This multi-pronged approach suggests Ark is betting on long-term adoption of digital assets as an integral part of global financial systems rather than speculating on near-term price movements.
Market Context: Crypto Equities Under Pressure
The aggressive buying occurs against a backdrop of sustained pressure on crypto-related equities. The CoinDesk 20 Index's 4.7% Thursday decline reflects broader weakness across major cryptocurrencies, with Bitcoin trading below critical support levels and institutional outflows from Bitcoin ETFs reaching record monthly levels approaching $3 billion.
Crypto stocks have mirrored the underlying asset weakness, with companies like MicroStrategy, Galaxy Digital, and mining firms experiencing significant declines. However, Ark's contrarian positioning suggests Wood believes current valuations fail to reflect the long-term fundamental value of companies building critical cryptocurrency infrastructure.
The timing is particularly notable given the Trump administration's pro-crypto stance and recent regulatory developments. The SEC's Crypto Task Force has begun hosting roundtables to address regulatory clarity, while over 65 industry organizations recently called on President Trump to direct federal agencies to immediately clarify digital asset regulations.
Historical Precedent for Wood's Strategy
Wood has built her reputation on making concentrated bets on disruptive technologies during periods of market uncertainty. Her flagship ARK Innovation ETF (ARKK) experienced significant volatility in recent years but has historically generated substantial returns when her long-term theses prove correct.
The current crypto buying spree resembles Ark's approach to other technology sectors during market downturns. Wood has consistently emphasized taking "a long-term outlook" and viewing market volatility as an opportunity to acquire positions in innovative companies at attractive valuations.
However, the strategy carries significant risk. If the crypto market continues deteriorating - driven by factors like sustained regulatory uncertainty, macroeconomic headwinds, or technological setbacks - Ark's concentrated positions could generate substantial losses. The firm's performance will ultimately depend on whether the crypto industry can navigate current challenges and deliver on its transformative potential over a multi-year horizon.
Institutional Signal or Isolated Bet?
Ark's accumulation raises questions about whether other institutional investors will follow suit or whether Wood's firm represents an outlier willing to embrace volatility that others are fleeing. The nearly $80 million two-day buying spree stands in stark contrast to the record ETF outflows and institutional profit-taking that have characterized November's market action.
For market participants, Ark's moves provide a real-time case study in contrarian investing during crypto market corrections. The coming months will reveal whether Wood's bet on crypto infrastructure proves prescient - positioning Ark to capture substantial gains during the next bull market - or whether the firm has moved too aggressively into a sector that faces extended headwinds.
As crypto markets navigate regulatory uncertainty, macroeconomic pressures, and technical breakdowns, Ark Invest's bold accumulation represents a high-conviction vote for the long-term viability of cryptocurrency infrastructure companies. Whether that conviction proves justified may not be clear for quarters or even years - but it provides a stark counterpoint to the fear and selling that has dominated market sentiment in recent weeks.