Ark Invest increases its crypto positions at Coinbase and Circle

Investors often look for opportunities to buy when markets are falling, a strategy commonly referred to as “buying the dip.” Ark Invest, led by tech-focused investor Cathie Wood, appears to be following this approach in the crypto sector. The company is steadily increasing its stakes in digital asset-related businesses, even as prices face downward pressure.

Ark expands its crypto positions

On Thursday, Ark Invest added more shares in key crypto-related companies, including Coinbase, BitMine Immersion Technologies and Circle. Most of these purchases were made through Ark's Fintech Innovation ETF, which increased its Coinbase holdings by about 42,000 shares, worth about $10 million. This brought the fund's total position in Coinbase to nearly $58 million.

How is Ark Invest further increasing its exposure to crypto?

• The company boosted its stake in BitMine Immersion Technologies with a $9.9 million investment and added $9 million to its holdings in Circle.
• It also expanded its involvement in Bullish by investing approximately $9.75 million across three ETFs.
• Robinhood shares received a $6.7 million addition.

Ark's activity follows previous movements, including a $30 million increase in Circle holdings last week. The company also expanded its investment in BitMine Immersion Technologies, even as the company's stock price weakened.

In total, Ark Invest's crypto exposure has grown significantly, with total holdings in Coinbase across three ETFs exceeding $500 million. The company also diversified its portfolio beyond crypto by purchasing $16.8 million worth of Nvidia shares, reflecting a diversified approach.

Cathie Wood revises her Bitcoin forecasts in the face of market developments

This continued focus on digital assets aligns with Cathie Wood's long-standing bullish outlook on Bitcoin. She previously predicted that the cryptocurrency could reach around $1.5 million per coin by 2030. Earlier this month, in a interview with CNBCshe lowered that projection, explaining that stablecoins are increasingly performing the functions that Bitcoin was intended to provide, a trend particularly visible in developing markets. This adjustment led her to reduce the high estimate by about $300,000, bringing the revised target to about $1.2 million per piece.

Achieving this goal would require a substantial increase in prices from current levels. Bitcoin is trading around $85,900, which means it is expected to rise by around 1,312% to $1.2 million. The crypto saw a moderate gain of around 2% over the past 24 hours, but a long-term advance of more than twelve times its current value would be necessary to meet Wood's projection.