Why Is Cathie Wood Buying More BitMine As Ethereum Plummets? Ark Invest Doubles Down as Tom Lee Defends Strategy

Key Takeaways

• Cathie Wood’s ARK Invest added much than $44 cardinal successful crypto-linked equities, including BitMine, Robinhood, and Circle.

• BitMine president Tom Lee defended the firm’s Ethereum treasury exemplary contempt billions of losses.

• Analysts accidental Ethereum’s terms lacks momentum.

Cathie Wood’s ARK Invest accrued its vulnerability to crypto-linked equities this week, buying shares of BitMine and different digital-asset firms, contempt Ethereum’s crisp terms driblet and mounting sector-wide losses.

The purchases travel arsenic Tom Lee, BitMine’s Chairman, took to X to respond to mounting disapproval implicit his steadfast losing $6.6 billion.

ARK Invest disclosed purchases of much than $44 cardinal worthy of crypto-related stocks connected Monday, dispersed crossed respective of its exchange-traded funds, including the ARK Innovation ETF and the ARK Blockchain & Fintech Innovation ETF.

Among the largest additions was BitMine Immersion Technologies, Tom Lee’s Ethereum-focused treasury institution whose shares fell astir 9% connected the day, mirroring Ethereum’s terms drop.

ARK bought astir 274,000 shares, valuing the acquisition astatine astir $6.2 cardinal based connected closing prices.

Wood’s steadfast besides added astir $21 cardinal worthy of Robinhood Markets shares aft the online brokerage’s banal slid astir 10%.

Smaller purchases included the stablecoin issuer Circle, the crypto speech Bullish, and Block and Coinbase, each of which fell alongside the broader market.

The renewed absorption connected BitMine comes arsenic its chairman, Tom Lee, pushed backmost publically against disapproval of the company’s increasing unrealized losses tied to Ethereum’s slide.

Taking to X, Lee fought backmost against disapproval of the firm’s $6.6 cardinal nonaccomplishment arsenic Ethereum prices dropped, claiming that the strategy was designed to withstand specified losses.

Lee described the losses arsenic a “feature” alternatively than a “bug,” implying it was an intentional portion of the strategy.

Recent disclosures amusement BitMine holding much than 4.2 cardinal Ethereum, with the worth of those holdings falling to astir $9.6 cardinal from astir $14 cardinal precocious past year.

Lee said the institution remained committed to its semipermanent strategy and reiterated that Ethereum was “the aboriginal of finance.”

At the clip of reporting, Ethereum was trading astatine $2,257, down 25% implicit the past 7 days.

Ethereum’s caller rebound appears technically fragile, according to CCN expert Victor Olanrewaju, with momentum indicators continuing to awesome bearish control.

While terms enactment has stabilized successful the abbreviated term, method signals suggest further downside is possible.