Ark Invest has purchased 262,463 Block shares worth $19.2 million after an extended period of selling. Cathie Wood’s firm now holds 2.6 million Block shares valued at $193 million. Ark Invest stock closed at $73.03 on Monday.
Ark Invest has been on a selling spree recently, with the most recent dump of 415K Circle shares. Ark Invest stock is trading at $75.23 with a 0.47% positive change over the past 24 hours. Block closed at 73.03 on Monday, marking the lowest level since July 18, and a 0.49% daily drop. It has, however, surged 6.3% over the past month.
Cathie Wood’s Ark Invests doubles down on Block’s Bitcoin-centric model
The purchase happened over three of ARK’s exchange-traded funds (ETFs). The ARK Innovation ETF (ARKK) bought 152,980 shares, the ARK Next Generation Internet ETF (ARKW) purchased 69,526 shares, and lastly, the ARK Fintech Innovation ETF (ARKF) bought 39,957 shares, cumulatively purchasing 262,463 shares of the Block.
Cathie Wood’s investment firm now holds a total of 2.6 million shares of Block valued at around $193 million. The ARKK holds the most significant portion, with 1.34 million shares worth around $97.7 million, while ARKF and ARKW share the remaining 1.3 million shares.
The recent purchase has broken Ark Invest’s extended bearish streak. In July alone, the investment firm sold 551,834 Block shares, worth $40.3 million today. ARK Invest also sold 415,844 Circle shares on July 23, valued at $109.6 million, complementing its long selling streak, bringing the total to 1.25 million shares by then.
Circle had experienced a nearly 250% stock surge since its public debut in May, prompting the Ark investment firm to take significant profits from the sale. The investment firm reinvested most of the proceeds into AMD, Airbnb, and Shopify across its multiple ETFs. Last week, it dumped 279,047 shares for $22 million.
The recent acquisition was prompted by Cathie Wood’s support for Block’s strategy of integrating Bitcoin into its Cash App platform. Jack Dorsey, chairman of Block, has spearheaded the integration of Bitcoin into the financial services firm ecosystem to enable its users to buy, sell, and store BTC.
Wood consistently shows that Bitcoin and blockchain technology are transformative forces in the financial sector. Her latest acquisition of the Block’s shares confirms the firm’s commitment to backing emerging disruptive technologies.
Dorsey reaffirms Block will fully integrate Bitcoin across its products
Dorsey reiterated Block’s commitment to Bitcoin, saying it will fully incorporate the digital asset into its products. Some analysts have commented that the acquisition could reignite institutional confidence in Bitcoin-centric fintech models and potentially inspire mainstream adoption.
Block reported its Q2 earnings last week, showing strong results. It posted $2.54 billion in profits, a 14% rise on year-over-year gross profit. Cash App was the main driver of the Q2 results, generating $1.5 billion in gross profit, while Bitcoin accounts generated $8 million. Despite the positive results, Block’s stock suffered a nearly 8% drop after the announcement. The stock has also remained down by 21% since January.
Dorsey’s firm is also reportedly planning to roll out a suite of banking software tailored to small and medium-sized enterprises, with initial integrations targeted for the end of 2025. The company aims to expand its business reach with increased cryptocurrency capabilities.
Some market analysts have revealed that Ark Invest’s new acquisition of Block’s shares could increase the liquidity and visibility of Block’s stock. The analysts noted that the firm’s Bitcoin-centric model could be the key driver.
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