Ark Invest buys dip in crypto-linked equities

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Ark Invest buys dip in crypto-linked equities

Highlights

Ark Invest bought over $50M in crypto-linked stocks, including Coinbase, BitMine, and Circle, during a sharp sector selloff.
The purchases came as Bitcoin and Ether dropped sharply, dragging down crypto equities and reinforcing strong market correlation.
Ark views the downturn as cyclical, using weakness to add long-term exposure tied to its deflation and innovation thesis.

Ark purchased roughly $17 million worth of BitMine shares, $16.26 million in Coinbase stock, and $10.8 million in Circle Internet Group across its ARKK, ARKW, and ARKF funds, reports The Block.

The firm also added positions in Block Inc. worth $5.94 million, Bullish exchange shares worth $5.2 million, and $1.24 million of its Ark-21Shares Bitcoin ETF. All six assets declined during the trading session, underscoring Ark’s strategy of buying into weakness. BitMine, the largest corporate holder of Ethereum, dropped more than 11% to $30.95. Coinbase and Circle saw steeper losses of 6.37% and 9.60%, respectively.

Crypto market downturn sets the backdrop

Ark’s purchases came amid a broader pullback in cryptocurrency markets. Bitcoin fell more than 4% on Monday to around $85,800, while Ether dropped nearly 6% to trade below $3,000. The weakness in digital assets weighed heavily on equities tied to crypto trading, infrastructure, and treasury strategies. Ark’s own spot Bitcoin ETF declined 4.91% during the session, reflecting the broader market move.

Block shares slipped just over 1%, while Bullish declined about 2.5%, showing relatively milder reactions compared with pure-play crypto firms. The synchronized decline across tokens and stocks highlights the tight correlation between crypto prices and related equities. Despite the selloff, Ark moved decisively to increase exposure rather than reduce risk.

Wood reiterates long-term deflationary thesis

The buying activity aligns with Cathie Wood’s long-standing conviction in disruptive technology and digital assets. Earlier this month, Wood reiterated her view that innovation-driven productivity gains are creating “undercurrents of deflation” across the global economy. She has argued that these forces could lead to a meaningful break in inflation over the next year, benefiting growth-oriented assets. In that context, crypto-related companies represent long-duration bets on financial and technological transformation.

Ark has consistently framed market drawdowns as opportunities to accumulate high-conviction positions. The latest trades suggest the firm sees current weakness as cyclical rather than structural. For Ark, the pullback reinforces its belief in the long-term role of crypto and blockchain-linked businesses in the global economy.

Recently we wrote that over the next five trading days, RIOT is expected to fluctuate within a $13.25 to $15.90 volatility band relative to current levels, reflecting a ±10% range.

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