The latest reports reveal that Ark Invest has acquired more than 310,000 shares of the Grayscale Bitcoin Trust (GBTC) on July 19 worth almost $8 million. The asset management company acquired these shares for its ARK Next Generation Internet ETF (ARKW) at per share, based on the published records from ARK Investment Management.
With every share of GBTC redeemable for 0.000939767 bitcoin, that purchase was worth almost $8 million at the time of writing.
While the purchase is not earth-shattering given the size of the Ark portfolio, the timing of this move is quite notable, since the last time the price of bitcoin dipped below $30,000, the company, led by CEO Cathie D. Wood, acquired more than 1 million shares of GBTC for the ARKW ETF.
Notably, Wood appears to be intent on increasing her BTC exposure, as the move followed her company’s addition of more than 70,000 Coinbase shares to its position. Under the direction of Wood, Ark has been adding its exposure to GBTC and BTC-related public entities such as Coinbase and Square all through the recent dip.
Ark’s largest Bitcoin-related position is Tesla, with a position that is worth more than $2 billion, though Ark had invested in Tesla before the company decided to add bitcoin to its balance sheet in 2021.
Ark’s fourth-biggest position is Square, with an allocation valued at more than $1 billion, and most analysts focused on how Wood added to Ark’s Square holdings in the wake of Dorsey’s plans to create DeFi applications and an open-source wallet for BTC.
Finally, Ark’s third-biggest Bitcoin-related holding is its investment in Coinbase. It currently holds more than $900 million worth of shares. Interestingly, Ark has just strengthened its Coinbase position in the wake of the firm’s public offering and its drop in share price to nearly $220 per share.
Still, some would say that Wood’s latest bitcoin-related acquisitions have proven that Ark’s strategy of delivering long-term value is with a “low correlation to traditional investment strategies.”
Jack Dorsey, Cathie Wood, and Elon Musk are set to discuss Bitcoin at the highly anticipated ‘B Word’ digital conference on July 21, 2021.