Ark Invest bought over 310,000 shares from the Grayscale Bitcoin Trust Monday to fund its ARK Next Generation Internet Exchange Fund (ARKW) at $25 per Share, according to published records by ARK Investment Management.
The purchase of GBTC was nearly $8 million. Each share can be redeemed for 0.000939767 Bitcoin.
Despite not being a major move considering the Ark portfolio’s size, it is noteworthy that the move was made at a time when bitcoin prices were dropping below $30,000: CEO Cathie Wood purchased more than 1,000,000 shares of GBTC to fund the ARKW ETF.
Wood appears to be keen to increase her exposure to bitcoin, considering that the move came after her firm added over 70,000 Coinbase shares.
Ark, under the guidance of Wood has increased exposure to GBTC-related public entities like Square and Coinbase during the recent dip.
Ark has the largest Bitcoin-related position, Tesla, worth more than $2 billion. Ark had previously invested in Tesla before that company decided to add bitcoin to their balance sheet in 2021.
Square is Ark’s fourth largest position, valued at just under $1 billion. Many analysts pointed out how Ark’s Square holdings were increased by Wood in the wake Dorsey’s plans to create Defi applications as well as an open-source wallet for Bitcoin.
(Despite the fact that the news pieces were widely linked in the media, there was no official statement linking them.
Ark’s third largest Bitcoin holding is its Coinbase investment – it has just over $900million worth of shares. Ark’s Coinbase position has been strengthened by the company’s public offer and the decline in share prices to $220 per share.
Some would argue that Wood’s recent bitcoin-related acquisitions are proof Ark’s strategy to deliver long-term value with low correlation to traditional investment strategies.
Wood, Jack Dorsey and Elon Musk will be discussing Bitcoin at the highly anticipated “BTC Word” digital conference, which takes place on Wednesday.