Ark Invest Makes Major Moves: Selling Block Inc. Shares Amid Bitcoin Surge
Cathie Wood’s Ark Invest, a prominent investment firm known for its bold bets, made significant trades on Tuesday, with the most notable being the sale of shares in Block Inc. (SQ), the company led by Twitter co-founder Jack Dorsey. This move came as a surprise, especially considering Block’s recent positive second-quarter earnings, which showcased growth in its Cash App and innovative strategic initiatives.
The trade involved the sale of 17,816 shares of Block Inc. from Ark Invest’s flagship ARKK fund. Based on Tuesday’s closing price of $71.79 per share, the value of this transaction amounted to approximately $1.28 million. Interestingly, this decision to sell Block shares coincided with a significant surge in Bitcoin, the apex cryptocurrency. Bitcoin has been on a tear this week, experiencing a notable price increase.
Dorsey has long envisioned a transformative future for Block, moving beyond traditional payment services to embrace Bitcoin and explore the potential for building a new banking model. Recently, Block took a major step into the crypto realm by securing its first major deal in crypto mining with Core Scientific. J.P. Morgan estimates that this deal could generate between $225 million and $300 million for Block.
While Dorsey’s commitment to Bitcoin is evident, analysts remain cautious, emphasizing the need for Block to demonstrate solid profit margins to validate its ambitious foray into the crypto space. They are keen to see how this focus on Bitcoin will translate into tangible financial results for the company.
Other Notable Trades by Ark Invest:
Beyond the Block Inc. sale, Ark Invest made other noteworthy trades on Tuesday, including:
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Purchases:
* Tempus AI Inc.: Ark Invest bought 17,082 shares from its ARKG fund and 75,991 shares from its ARKK fund. This suggests a continued interest in the field of artificial intelligence and its application in healthcare.
* Blade Air Mobility Inc. (BLDE): Ark Invest acquired shares of this company from its ARKQ fund, indicating an optimistic outlook on the future of urban air mobility.
* Advanced Micro Devices Inc. (AMD): Ark Invest purchased 1,000 shares of the semiconductor giant from its ARKX fund, showcasing a belief in the company’s growth potential.
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Sales:
* Materialise NV (MTLS): Ark Invest sold shares of this 3D printing company from its ARKQ fund. This suggests a potential shift in investment strategy for the firm.
* Moderna Inc. (MRNA): Ark Invest offloaded a total of 24,981 shares of the COVID-19 vaccine maker from its ARKK and ARKG funds. The value of this sale was approximately $1.4 million.
Ark Invest’s trading activities often reflect its broader investment thesis and its views on the future of various industries. The firm’s decisions are closely watched by investors and analysts alike, as they provide insights into the trends shaping the market. As the company continues to navigate the dynamic landscape of the stock market and the evolving world of cryptocurrencies, its moves will undoubtedly continue to spark debate and analysis.