ARK Invest CEO Cathie Wood Shifts ETF Portfolios Toward Ethereum Treasury Company Bitmine

ARK Invest’s CEO Cathie Wood is reportedly adjusting her fund portfolios, strategically reducing exposure to Coinbase and Roblox while increasing investment in Bitmine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat’s Tom Lee.

Detailed Portfolio Shifts

Wood’s ARK Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF) recently sold approximately 218,986 shares of Coinbase (COIN) valued at around $90.5 million and 463,293 shares of Roblox (RBLX) worth approximately $57.7 million, according to Monday’s trading data.

Concurrently, these three funds acquired 4.4 million shares of Bitmine Immersion Technologies (BMNR), a company specializing in Ethereum treasury services. This purchase represents roughly $174 million in investment, increasing BMNR holdings to approximately 1.5% across the portfolios of each ETF.

The strategy shift also involves moving holdings away from companies like Robinhood and Block Inc. towards Bitmine and other entities such as Advanced Micro Devices (AMD), DoorDash, and Airbnb.

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Historical Acquisition by ARK Funds

This marks the first significant acquisition of Bitmine stock by Wood’s funds since ARK officially announced the pivot toward Ethereum investments in late June.

Immediately following the company’s Ethereum-focused strategy revelation, Bitmine’s stock experienced massive appreciation, surging more than 3,000% to reach an all-time high of approximately $135 on July 3, according to Google Finance data. The stock has since retreated but remains up over 400% from this year’s beginning.

The company recently attracted significant investor interest, including a 9.1% stake acquisition by billionaire venture capitalist Peter Thiel.

Funds’ Holdings and Market Position

ARKK, with $6.8 billion in assets under management and a focus on disruptive innovations, maintains substantial positions in tech companies like Tesla (representing 9.7%). Notwithstanding the recent sales, cryptocurrency-related holdings remain prominent, with Coinbase and Roblox still ranking among its top significant assets. ARKK holds around 5% in stablecoin issuer Circle.

Asset Distribution Changes

The ARKW ETF ($2 billion AUM), centered on next-gen internet infrastructure, retains Robinhood, Coinbase and Tesla among its largest holdings, supplemented by minor positions in Meta, Shopify, and Amazon. It recently also shed approximately 225,742 shares of the ARK 21Shares Bitcoin ETF (ARKB) on July 16.

ARKF, managing $1.2 billion, includes Shopify, Robinhood and Coinbase among its top investments alongside Circle. Interestingly, ARKF exhibits the sole direct ETH exposure among the three funds, allocating 1.15% to the 3IQ Ether Staking ETF.