ARK Invest Expands Exposure to BitMine Amid Tesla Stake Reduction

Cathie Wood’s ARK Invest has expanded its position in Tom Lee’s Ether treasury firm BitMine, while trimming one of its long-standing bets on Tesla.

According to the firm’s latest daily trading disclosures, ARK purchased 48,454 BitMine shares, worth roughly $2 million, across three of its exchange-traded funds – ARK Innovation (ARKK), ARK Fintech Innovation (ARKF), and ARK Next Generation Internet (ARKW).

The move marks ARK’s continued accumulation of BitMine since the company began holding Ether (ETH) as a treasury asset in April. BitMine’s stock jumped 7.65% on Friday to close at $40.23 in after-hours trading, extending its remarkable 415% year-to-date gain, according to Google Finance data.

Meanwhile, ARK trimmed its Tesla position, selling about 71,638 shares across its funds – a sale worth around $30 million based on Tesla’s Friday close of $429.52. The ARKK and ARKW ETFs were the main sellers, continuing a gradual reduction in Tesla exposure despite the stock’s long-standing role as one of ARK’s core holdings. Tesla shares slipped 3.68% on the day.

Read More:

JPMorgan Expands Bitcoin ETF Holdings as Institutional Interest Grows

The reduction followed news that Tesla shareholders approved CEO Elon Musk’s nearly $1 trillion compensation package, with 75% voting in favor. The plan grants Musk 12 tranches of stock options tied to performance milestones, potentially increasing his ownership from 13% to 25% if Tesla reaches market valuations between $2 trillion and $8.5 trillion.

While ARK’s Tesla trimming caught attention, the growing interest in BitMine may signal Wood’s conviction in Ethereum’s long-term value. BitMine currently holds about 3.4 million ETH, having accumulated over 565,000 tokens in the past month alone, according to industry data. However, the company’s aggressive strategy hasn’t been without setbacks – it reportedly faces around $2.1 billion in unrealized losses from its ETH holdings after the recent crypto market downturn, according to CryptoQuant.

Despite the paper losses, ARK’s latest investment indicates confidence that Ether’s recovery and broader institutional adoption could eventually turn BitMine’s balance sheet into an asset rather than a liability.