BMNR stock dips 7% as ARK Invest doubles down with $15.6M buy

Key Takeaway

Cathie Wood’s ARK Invest continues to pour into BitMine Immersion (BMNR), signaling strong confidence in Tom Lee’s Ethereum strategy. Despite recent market dips, BitMine shares remain up 490% year-to-date, underpinned by solid revenue growth. 

Cathie Wood’s ARK Invest has reinforced its confidence in Bitmine Immersion Technologies (BMNR) by acquiring an additional $15.6 million worth of shares, pushing its total investment in the company beyond $300 million. 

According to the Tom Lee Tracker, on the 27th of August, ARK purchased a total of 339,113 BMNR shares across three of its ETFs.

 The breakdown includes 227,569 shares through the ARK Innovation ETF (ARKK), 70,991 shares via the ARK Next Generation Internet ETF (ARKW), and 40,553 shares through the ARK Fintech Innovation ETF (ARKF).

This happened even as the stock tumbled 7.85%, signaling growing faith in Tom Lee’s Ethereum [ETH] acquisition strategy.

Cathie Wood’s Ark Invest doubles down on BMNR

Well, Wood had initially begun accumulating BMNR shares in late July, coinciding with Tom Lee’s aggressive Ethereum accumulation strategy.

At press time, ARK Invest’s current holdings in BMNR stood at nearly half the size of its position in Coinbase, where the firm maintains close to $676 million in shares, even after recently selling 5,721 COIN shares.

This steady accumulation reflects ARK’s consistent appetite for BitMine. 

On the 21st of July, the firm made a major move by purchasing $174 million worth of BMNR shares across three of its ETFs in a single day, followed by an additional $17 million acquisition on the 2nd of August.

These aggressive buys highlight ARK’s bullish outlook on Ethereum treasury firms, particularly as BitMine’s ETH holdings have recently surged to $7.5 billion.

Analyzing ARK Invest’s crypto exposure

In addition to its investment in Bitmine Immersion Technologies, ARK Invest has been steadily increasing its exposure to other crypto-related equities. 

Over the past week, the firm added $21.2 million in Bullish stock and $16.2 million in Robinhood Markets shares on the 20th of August, bringing its total Robinhood holdings to approximately $543 million across its funds. 

Earlier this month, ARK also purchased $19.2 million worth of Block shares, reversing a previous reduction in its position. 

These moves reflect ARK’s broader strategy of backing disruptive technologies, with a strong focus on blockchain, artificial intelligence, and fintech innovation.

BitMine shares and crypto market trend

However, despite these moves, the BMNR stock ended at $46.03, down 7.85%, and closed after-hours at $45.01, a 2.22% decline, according to Google Finance.

Yet, if viewed from the broader picture, the stock is still up 490% for the year, thanks to the company’s fundamentals supporting this growth.

For the quarter ending May, BitMine reported revenue of $2.05 million, a 67.5% increase from the previous year, while its net profit margin rose by 43%.

This shows that Tom Lee, often compared to Michael Saylor within the Ethereum community, has positioned BitMine as a major ETH treasury player.

Ark Invest’s continued accumulation of BMNR shares, even during market dips, signals strong confidence in both Lee’s strategy and the broader potential of Ethereum-focused treasury firms.