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In what’s being framed as a contrarian plunge into the depths of crypto-equity risk, ARK Invest, led by Cathie Wood, has resumed what it calls its “crypto buying spree.”
The firm has added significant holdings in crypto-linked companies, including BitMine Immersion Technologies and Bullish Exchange. According to their trade disclosures, ARK’s ETFs snapped up roughly 169,407 shares of BitMine across multiple funds (ARKK, ARKW, ARKF) worth about US$5.8 million, and 75,515 shares of Bullish valued at around US$2.9 million.
So yes they’re buying while others are selling. But before you cheer them as visionaries, let’s dig into what this really signals, what risks it reveals, and whether ARK’s move is more bold than wise.
What ARK is doing and why it raises eyebrows
1. Buying the dip in troubled stocks.
Both BitMine and Bullish are under pressure: BitMine’s shares recently dropped about 6% on a day ARK made purchases. Bullish also declined around 6% before ARK’s acquisition. The move may look opportunistic but buying falling stocks doesn’t guarantee they’ll rebound.
2. Heavily tied to crypto-equity risk, not pure crypto assets.
Instead of buying Bitcoin or Ethereum directly, ARK is investing in firms whose fortunes depend on crypto cycles, regulatory clarity, mining economics, exchange volumes and token flows. That means layered risk: crypto risk + company risk + equity market risk.
3. Narrative outpaces fundamentals?
BitMine, for instance, is known as a major holder of Ethereum assets and has raised its institutional profile, but its business model remains niche and subject to volatile crypto markets. Bullish is an IPO-era exchange play that has yet to prove sustained profitability or dominance. ARK’s long-tail bet: “ARK crypto equity buy the dip bitmine bullish” may be more hope than data.
Why this could be problematic
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Concentrated risk: Parking millions into stocks tied so directly to crypto means if the next crypto fall comes, the double-shock will hit (token market down + company earnings down).
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Market sentiment mismatch: When everyone is jittery about crypto (and sentiment is jittery), buying risk doesn’t always pay off. The long-tail phrase: “crypto market sentiment drag arkinvest buying spree risk”.
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Timing and valuation: Buying when share prices are dropping can be smart but only if the fundamentals support a turnaround. If not, you’re just catching a falling knife. “ARK Invest buys falling crypto stocks bitmine bullish valuation risks”.
So what should investors make of it?
Investors should view ARK’s move less like a crystal-ball “we know the upside” call, and more like a calculated gamble. Yes, they may have conviction. But conviction does not equal guarantee.
If you’re aligned with crypto long term and believe in firms like BitMine and Bullish despite current clouds, this could reassure you. But if you expect steady returns or think these are safe plays think again. “crypto equity investment risk arkinvest strategy 2025”.
FAQs
Q1: What exactly did ARK Invest buy?
ARK bought approximately 169,407 shares of BitMine Immersion Technologies across its ETFs and about 75,515 shares of Bullish Exchange, worth roughly US$5.8 million and US$2.9 million respectively.
Q2: Why is this move significant?
Because ARK is doubling down on companies tied to crypto, despite broader market pullbacks. It signals conviction, but also exposes ARK to magnified risk through crypto-equities rather than direct crypto assets.
Q3: Is this a sign that ARK thinks crypto will surge again soon?
Possibly their purchases suggest a belief in future upside. But it could equally mean they’re buying on weakness, hoping for a turnaround. It’s not a guarantee of an imminent crypto rally.
Q4: Should I follow ARK and buy the same stocks?
Not automatically. Your risk tolerance, investment horizon and conviction in these companies must align. ARK’s strategy involves high risk. You should do your own research.
Q5: What are the key risks to watch here?
Main risks: crypto market downturn, regulatory setbacks, company-specific execution failures, valuation mismatches. If crypto heads south, these stocks could fall further.
Q6: What if these bets pay off?
If crypto recovers and these companies execute well, ARK’s positions could yield outsized returns. But that scenario depends on crypto cycles, regulation, and company performance all variable.