In a significant realignment of its digital asset strategy, Cathie Wood Ark Invest has signaled a clear pivot towards Ethereum (ETH) treasury plays, offloading substantial stakes in crypto-linked giants Coinbase, Robinhood, and Block, to instead channel approximately $175 million into BitMine Immersion (BMNR). This strategic move underscores a growing institutional appetite for direct exposure to decentralized finance (DeFi) ecosystems and the underlying assets powering them.
Ark’s latest trading disclosures, dated July 21, reveal the firm’s acquisition of 4,421,034 shares of BitMine Immersion across its flagship Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF). Based on BMNR’s closing price of $39,57 on July 21, this investment solidifies Ark’s commitment to firms directly accumulating and managing significant Ethereum reserves.
BitMine Immersion has rapidly emerged as a dominant force in the Ethereum treasury landscape. According to data from Strategic ETH Reserve, the firm now stands as the largest single holder of Ethereum, boasting over 300,000 ETH. This impressive accumulation places BitMine Immersion ahead of other notable holders such as SharpLink, which holds over 280,000 ETH, and even the Ethereum Foundation itself, with approximately 234,000 ETH. Ark Invest’s substantial investment in BMNR reflects a bullish outlook on Ethereum’s long-term value and the potential for firms actively managing large ETH treasuries.
In conjunction with its BitMine acquisition, Ark Invest systematically reduced its exposure to three well-known crypto-adjacent public companies. The firm sold 218,986 shares of Coinbase (COIN) for an estimated $90,6 million, 109,824 shares of Robinhood (HOOD) valued at $11,46 million, and 90,061 shares of Block (SQ) for approximately $7 million. These divestitures were distributed across the same three actively managed ETFs.
This portfolio adjustment aligns with Ark’s established investment philosophy of capitalizing on outperforming assets and redeploying capital into what it identifies as nascent, high-growth opportunities. Coinbase, a leading crypto exchange, has recently seen its stock surge, briefly crossing a $100 billion market capitalization, fueled by positive regulatory developments in the U.S. Congress, including the passage of key crypto bills like the CLARITY Act and the GENIUS Act. Similarly, Robinhood shares experienced a significant uptick following optimism surrounding its tokenized equities and expanded crypto offerings in Europe. Block, Jack Dorsey’s payments company, also gained investor traction after its inclusion in the S&P 500 index, marking it as only the second crypto-centric company after Coinbase to achieve this distinction.
Ark Invest’s calculated shift from broadly diversified crypto-linked stocks to a specialized Ethereum treasury firm like BitMine Immersion highlights a nuanced approach to digital asset investment. It suggests a belief that direct exposure to foundational cryptocurrencies, managed by dedicated treasury firms, offers a more compelling growth trajectory than traditional public companies with tangential crypto operations, particularly as the Ethereum ecosystem continues to mature and attract institutional interest. This move could set a precedent for other institutional investors seeking deeper engagement with the evolving digital asset economy.
