Cathie Wood’s ARK Invest appears to be rebalancing its innovation portfolio — trimming traditional tech exposure while expanding its stake in crypto-linked equities.
- ARK Invest added 48,454 BitMine shares worth around $2 million, boosting its crypto exposure.
- Tesla holdings were trimmed by 71,638 shares as ARK rebalanced its innovation funds.
- BitMine holds 3.4 million ETH, though it faces $2.1 billion in unrealized losses amid market weakness.
- Cathie Wood’s strategy is increasingly aligned with blockchain-based financial infrastructure.
The firm has been quietly accumulating shares of BitMine, a company that now holds one of the largest corporate treasuries of Ethereum (ETH), while easing back on its long-time favorite, Tesla.
The latest disclosures from ARK’s daily trade report show that the investment firm bought just over 48,000 shares of BitMine on Friday, spread across three of its flagship exchange-traded funds: ARK Innovation (ARKK), ARK Fintech Innovation (ARKF), and ARK Next Generation Internet (ARKW). The combined value of those purchases is roughly $2 million, marking yet another step in ARK’s growing alignment with blockchain-based companies.
Ethereum Treasury Strategy Draws Institutional Interest
BitMine has gained prominence this year for its unconventional balance-sheet strategy. The company has turned Ether into its primary reserve asset, holding nearly 3.4 million ETH as of late October. That’s equivalent to billions of dollars in crypto assets under management — a scale that rivals early corporate adopters of Bitcoin like MicroStrategy.
The company’s accumulation began in April, when it first started converting its cash reserves into digital assets. Since then, it has added more than half a million ETH in just one month, signaling a commitment to Ethereum’s long-term role as programmable infrastructure for finance.
However, the move hasn’t been painless. Data compiled by CryptoQuant suggests BitMine is sitting on about $2.1 billion in unrealized losses after the latest market downturn, as Ether’s price has slid in tandem with broader digital asset weakness.
Still, that hasn’t shaken investor confidence. BitMine shares have skyrocketed more than 400% in 2025, closing at $40.23 in after-hours trading Friday — up another 7.6% on the day, according to Google Finance. Many analysts now view the company as a benchmark for the growing trend of “crypto treasury” firms positioning themselves between traditional finance and blockchain networks.
Tesla Trimmed as ARK Rebalances
While building exposure to crypto, ARK has reduced its stake in Tesla, the electric vehicle maker that has defined much of its portfolio for years. On the same day it bought BitMine shares, ARK sold roughly 71,600 Tesla shares, a position valued near $30 million based on Tesla’s closing price of $429.52.
The decision comes as Tesla faces both financial scrutiny and renewed attention on its leadership. Earlier this week, shareholders approved Elon Musk’s record-breaking pay package, valued at close to $1 trillion, despite opposition from major proxy firms Glass Lewis and ISS. The approval cements Musk’s control of Tesla, potentially increasing his ownership stake from 13% to around 25% if performance milestones are reached.
Tesla’s stock fell 3.7% on Friday, reflecting some investor unease over both the cost of the compensation plan and the company’s slowing margins in its core vehicle segment.
ARK’s Broader Strategy
Wood’s investment thesis has long revolved around disruptive technologies — from autonomous vehicles and genomics to fintech and digital assets. But her recent trades suggest a more pronounced tilt toward crypto-related plays. Alongside BitMine, ARK has recently increased its position in Bullish, a regulated crypto exchange operator, with a $12 million investment earlier this month.
Market analysts interpret this rotation as a response to shifting macro conditions. With inflation data softening and institutional adoption of crypto ETFs expanding, ARK appears to be positioning ahead of what Wood has previously described as a “new era for blockchain capital markets.”
Her bullish stance on Ethereum and digital treasuries comes even as she continues to temper expectations for Bitcoin. In a recent commentary, Wood noted that “stablecoins and tokenized treasuries are gradually capturing liquidity that once flowed into Bitcoin,” emphasizing her preference for diversified blockchain exposure rather than single-asset concentration.
The Growing Role of Crypto in Corporate Balance Sheets
BitMine’s Ethereum accumulation reflects a larger trend that’s reshaping corporate finance. Instead of holding cash or government bonds, a small but growing number of companies are turning to crypto assets as a treasury hedge — a move that blends speculative risk with potential long-term strategic value.
For ARK, aligning with such firms reinforces its brand as a frontier investor. Whether that conviction pays off may depend less on quarterly performance and more on whether Ethereum continues to solidify its role as a global settlement layer.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/ark-invest-trims-tesla-stake-while-doubling-down-on-ethereum/