Cathie Wood’s ARK Doubles Down With a Fresh $39M Buy of Circle, Bullish and BitMine Shares Despite Falling Crypto Stocks
Cathie Wood’s ARK Invest has made a bold move, deploying into three crypto-linked equities: Circle, Bullish, and BitMine at a time when their stock prices are under pressure. The accumulation is another reminder of the company’s conviction in foundational crypto infrastructure, even as the broader market sentiment is bearish.
According to filings, bought the assets via its Innovation, Next Generation Internet, and Fintech Innovation platform-traded funds (ETFs).
ARK Keeps Backing Crypto Infrastructure Despite Current Downturn
ARK added about $16 million worth of Circle shares across its ETFs. Circle, the issuer of stablecoin USDC, has been under pressure recently, with its share price dropping by in a recent market recession. Still, the firm viewms undeterred, leaning into Circle’s long-term potential, especially later than a strong Q3 where the company reported $214 million in net income.
The firm also poured about $16.8 million into Bullish despite Bullish’s shares sliding sharply and losing value as the crypto market cooled. Again, the firm’s purchase suggests it is betting on the long-term value of Bullish platform and trading infrastructure.
ARK’s investment in is between $7 million and $8 million across the company’s ETFs. BitMine, which holds large ETH treasury reserves, dropped more than 9% in recent trading, yet ARK appears to be doubling down.
So, what makes these purchases notable is the timing, as Cathie Wood’s firm is purchaseing into fragileness for potential long-term strength. All three companies saw significant stock pullbacks just before the purchases. So, the company is acting counter-cyclically, suggesting a longer-term bet on crypto infrastructure.
Potential Investment Risks and Downsides
Despite the move being strategic, the move isn’t without risks. First, these stocks are down, and if the broader crypto downturn continues, investment positions could suffer further. Also, purchaseing via ETFs means the company’s exposure is tied to fund flows, and exiting could be challenging if market sentiment worsens.
Another risk is that Circle’s profitability hinges on USD Coin’s growth and its ability to monetize stablecoin operations. Bullish also needs to scale trading and adoption, while BitMine’s value depends on crypto prices and its . Moreover, each of these companies faces potential regulatory headwinds, especially Circle (due to stablecoin regulation) and crypto platforms or mining firms navigating evolving regulatory frameworks.
So, while this purchase can be viewn as a vote of confidence in the long-term infrastructure of crypto, institutional adoption, stablecoin usage, and mining or treasury plays remain crucial to its investment success or otherwise.
On the one hand, the move reinforces ARK’s long-term view that the pillars of the crypto economy are not just tokens, but crypto infrastructure will also generate value. Whether this play sets a prescient tone or will turn out to be overly ambitious will depend on execution, regulation, and how the crypto-equity ecosystem evolves in the coming months and years.
