ARK Invest Increases Bet on BitMine, Scales Back Tesla Position
ARK Invest, led by Cathie Wood, has increased its stake in BitMine, a firm known for holding Ether as a treasury asset, while reducing its long-standing position in Tesla. The move signals evolving priorities within ARK's high-profile exchange-traded funds (ETFs).
ARK Funds Add BitMine Shares
Based on daily trading disclosures dated Friday, ARK purchased 48,454 BitMine shares, valued at approximately $2 million, across three ETFs. These funds include the ARK Innovation ETF (ARKK), the ARK Fintech Innovation ETF (ARKF), and the ARK Next Generation Internet ETF (ARKW). ARK has been increasing exposure to BitMine since it began accumulating Ether reserves in April.
BitMine's stock price closed at $40.23 in after-hours trading, up 7.65% for the day, according to Google Finance. Since the beginning of the year, BitMine�s shares have surged 415%.
Reduction in Tesla Holdings
In contrast, ARK sold approximately 71,638 shares of Tesla, worth around $30 million at the closing price of $429.52. Both the ARKK and ARKW ETFs trimmed their positions in Tesla. The electric vehicle company has been a flagship holding for ARK since 2018. Tesla�s share price fell 3.68% on the same day as the sale.
The reduction in Tesla holdings coincides with shareholder approval of CEO Elon Musk�s substantial pay package at the company�s annual meeting in Austin, Texas. About 75% of voting shares supported the proposal, which could boost Musk�s stake in Tesla from around 13% to 25% if performance targets are met. The package includes 12 tranches of stock options tied to market capitalization milestones, ranging from $2 trillion to $8.5 trillion.
BitMine Faces Market Volatility
Despite its strong stock performance, BitMine is reportedly facing unrealized losses due to recent downturns in crypto markets. According to CryptoQuant, digital asset treasury companies like BitMine have been affected by declining Ether prices. BitMine currently holds nearly 3.4 million ETH, with more than 565,000 acquired over the past month, according to industry data.
Summary
- ARK invests $2 million in BitMine shares across multiple ETFs.
- ARK trims its Tesla holdings by roughly $30 million.
- BitMine holds nearly 3.4 million ETH but faces unrealized losses from market volatility.
- Tesla shareholders approve a large pay package for CEO Elon Musk.
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