Cathie Wood’s ARK Invest has once again doubled down on Ethereum’s future, adding $15.6 million worth of BitMine shares on August 27. With this latest acquisition, ARK’s total stake in the company now surpasses $300 million, making BitMine one of its most significant crypto holdings. Despite BitMine’s shrinking stock price this month, ARK is building its position steadily, reflecting continued confidence in Ethereum’s long-term potential.
ARK Invest Expands Its Position in BitMine
On Wednesday, ARK Invest spread the $15.6 million purchase across three of its best-known funds. The ARK Innovation ETF (ARKK) bought 227,569 shares, while ARK Next Generation Internet ETF (ARKW) secured 70,991 shares. ARK Fintech Innovation ETF (ARKF) added 40,553 shares. Together, the funds brought in 339,113 shares, even though BitMine’s price dropped 8% that day to $46.03, with another 2.22% slide in after-hours trading.
With this move, ARK’s total BitMine investment ranges between $306 million and $307 million, ranking it as the firm’s second-largest crypto-equity holding. Coinbase still retains the top spot at around $676 million, even after ARK sold 5,721 Coinbase shares last week.
Notably, Cathie Wood’s buying streak began on July 21, when ARK poured $174 million into BitMine in a single day. Further additions followed, including $17 million worth of shares on August 2. This consistent pattern underscores ARK’s strategy of accumulating during price dips rather than walking away from volatility.
The Strategy Behind ARK’s Ethereum Bet
BitMine has captured significant Wall Street attention after pivoting away from Bitcoin mining. It now focuses on building an Ethereum treasury, hoping to own about 5% of circulating ETH. The Las Vegas-based company currently holds between 1.58 million and 1.7 million ETH, valued at roughly $7.5 billion to $7.8 billion. That makes it the largest corporate holder of Ethereum worldwide, surpassing all competitors.
ARK’s aggressive accumulation shows a clear belief in Ethereum’s long-term role as a corporate treasury asset. BitMine’s strategy mirrors MicroStrategy’s high-profile Bitcoin play, led by Michael Saylor, but adapts it for Ethereum. Tom Lee of Fundstrat, now BitMine’s chairman, predicts ETH may climb 20% from its recent retreat, aiming for $5,500 in the near term.
Equally important, ARK follows a disciplined “buy the dip” approach. Each of its BitMine acquisitions occurred during a sharp stock decline, including the August 27 purchase made on an 8% daily drop. This tactic suggests Wood’s team sees volatility as an entry point rather than a red flag.
BitMine’s Volatile Performance Raises Questions
Despite being up nearly 490% year-to-date, BitMine’s stock has suffered steep swings. It soared in July after announcing the Ethereum treasury plan, briefly climbing to $161 a share. However, it now trades 74% lower than that peak, reflecting heightened caution among retail traders.
Financially, BitMine reported $2.05 million in revenue for the latest quarter, a 67.5% increase from last year. Its net profit margin also rose 43%. Still, the company’s fundamentals remain deeply tied to Ethereum’s price. With a price-to-sales ratio of 40.5x, its valuation far outpaces the industry average of 3x. This premium signals strong optimism but also significant risk.
One Wall Street analyst tracked by Barchart rates BitMine a “Strong Buy,” setting a $60 price target, which would mark a 30% upside from current levels. Even so, analysts continue to stress the stock’s unpredictable nature. In late July, it once lost more than 27% in a single day, highlighting its instability.
ARK’s Wider Crypto Investment Shift
ARK is not just focused on Ethereum through BitMine. The firm also broadened its crypto positions in August, purchasing $21.2 million in Bullish stock and another $16.2 million worth of Robinhood shares. Its Robinhood stake now totals around $543 million, rivaling its Coinbase allocation. Earlier this month, ARK even picked up $19.2 million worth of Block shares after a period of heavy selling.
Overall, the investment pattern signals a shift. ARK reduced exposure to Bitcoin-linked names like Coinbase and Block over the summer but redirected capital toward Ethereum-focused plays like BitMine. This rebalancing highlights Wood’s belief that Ethereum-driven ecosystems may now lead the broader decentralised finance revolution.
Written By Fazal Ul Vahab C H
