Cathie Wood’s Ark Invest made a notable move yesterday, scooping up a sizable chunk of BitMine Immersion Technologies stock during a dip. The firm bought an additional $15.6 million worth of shares after the price fell sharply.
It seems to be a classic case of buying on weakness, a strategy Ark has employed before with other holdings. Whether it pays off this time, well, that’s the big question. The purchases were spread across three of the firm’s actively managed ETFs, according to their daily trade disclosure.
Breaking Down the Purchases
Looking closer, the flagship ARK Innovation ETF (ARKK) added the most, picking up over 227,000 shares. The Next Generation Internet ETF (ARKW) and the Fintech Innovation ETF (ARKF) bought roughly 71,000 and 40,500 shares, respectively. All this buying happened on a day when BMNR shares closed down nearly 8% at $46.03.
It’s been a rough week for the stock, down over 11% in the last five sessions. But that near-term drop looks almost minor when you consider the stock is still up an astounding 534% since January. It’s a wild ride, and Ark appears to be betting it’s not over yet.
BitMine’s Growing Reserves
The context for all this is important. BitMine is deeply tied to Ethereum. Earlier this week, the company announced its total crypto and cash holdings had reached $8.82 billion. A huge portion of that, about $7.9 billion, is held in 1.71 million ETH.
And they’re not done. In a filing with the SEC just this past Monday, the company laid out plans to massively expand its share sale program. They want to raise up to $24.5 billion, a significant jump from the current $4.5 billion program. The stated goal? To get more funding for, you guessed it, additional Ethereum purchases.
It’s a bold strategy that hinges entirely on the future value of ETH. Ark’s latest buy seems to be a vote of confidence in that plan, or at least a calculated bet on its potential. Of course, past performance is never a guarantee of future results, and the crypto market remains notoriously volatile.
It’s worth remembering this is just a snapshot of what one investment firm is doing. It’s not a recommendation, just a interesting bit of market activity that tells us something about how a major player is positioning itself.
