ARK Invest Buys 160K Bullish Shares in Crypto Stock Push

ARK’s total Bullish holdings across three ETFs stands at over $129 million. The move comes after Bullish shares plunged from their post-IPO highs, prompting ARK to rebuild its position. While analysts are split on the stock ahead of its first earnings report since listing, ARK is still focused on diversifying its crypto exposure with major stakes in BitMine and Jack Dorsey’s Block.

ARK Invest Doubles Down on Bullish

Cathie Wood’s ARK Invest continued its push into crypto-related equities with a fresh purchase of more than 160,000 shares in crypto exchange Bullish. According to a filing on Tuesday, ARK bought around $8.21 million worth of shares across two of its flagship funds, with the ARK Innovation ETF acquiring 120,609 shares and the ARK Next Generation Internet ETF adding 40,574 shares. The investment brings ARK’s total Bullish exposure across three of its funds to more than $129 million.

(Source: ARK Invest)

ARK has been a backer of Bullish since the exchange’s mid-August debut on the New York Stock Exchange, when it scooped up 2.53 million shares worth $172 million at the time. The latest buys follow earlier purchases this month, including $7.5 million in stock and a $21 million acquisition on Aug. 20. However, filings suggest ARK also took profits since the IPO and is now rebuilding its position after shares declined heavily from their early surge.

Bullish shares soared as high as $118 on listing day, more than tripling its $37 IPO price, but the stock fell back sharply, closing at $51.36 on Tuesday. This is almost 57% below its peak.

Bullish stock price over the past 24 hours (Source: Google Finance)

The company reported flat revenue growth and a steep 270% drop in operating income for the quarter ending in March, and is set to release its first post-IPO earnings report on Thursday. Analysts are divided on the stock, with Jefferies, JP Morgan, and Bernstein having neutral stances. Cantor Fitzgerald assigned it an “overweight” rating, which suggests it has some confidence in the exchange’s ability to outperform.

Bullish is not ARK’s only crypto-related play. Earlier this month, the firm boosted its position in Bitcoin mining company BitMine with a $4.4 million purchase, bringing its holdings to 6.7 million shares valued at $284 million. ARK lo has a sizable stake in Jack Dorsey’s Block, worth $193 million.