NEW YORK – Cathie Wood's ARK Invest has been actively rebalancing its portfolio, trimming its position in the high-flying stock of Robinhood (HOOD) while increasing its allocation to crypto-native companies. According to the firm's recent trade disclosures, ARK sold approximately $5 million worth of its long-held Robinhood shares over the past week.
Simultaneously, the firm invested nearly $30 million into BitMine Immersion Technologies (BMNR), a major crypto treasury firm, and Bullish (BLSH), the Peter Thiel-backed digital asset platform.
The decision to sell comes after Robinhood's stock has surged nearly 300% since April, pushing its market capitalization to $105 billion. Analysts view the sale not as a loss of confidence but as a prudent profit-taking measure. ARK Invest still maintains a substantial holding of $660 million in Robinhood shares as of September 10.
"ARK isn’t so much dumping their stocks as taking profit on very good trades and looking for the next opportunities," Annabelle Huang, founder of institutional execution firm Altius Labs, told DL News.
That next opportunity appears to be more direct exposure to the cryptocurrency market. The firm's new investments reflect a strategic shift toward companies whose value is closely tied to digital asset holdings.
"ARK Invest is definitely comfortable sliding down the risk curve," said Spencer Yang, managing partner at crypto investment firm BlockSpaceForce. "The underlying assets of BitMine is Ethereum, which they are not a stranger to, while Bullish has significant Bitcoin holdings."
BitMine has rapidly become the world's largest corporate holder of Ethereum, making it a key proxy for institutional investors seeking ETH exposure. Bullish, which recently completed a successful IPO, offers a new publicly-traded alternative to Coinbase.
Shane Molidor, founder of the crypto-focused advisory firm Forgd, noted that being "long on crypto treasury stocks … can be wise in a bull market because of their increased upside potential."
However, some analysts caution that the strategy is not without risk. "We’re starting to see digital asset company stock prices diverge from the underlying crypto prices, which is making investors question whether they are a worthwhile investment," Dom Kwok, a former Goldman Sachs analyst, told DL News.
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