ARK Invest made a significant purchase of $10.2 million worth of Bullish shares on Monday, a day when the cryptocurrency exchange's stock hit an all-time low. This acquisition occurred across three of ARK's exchange-traded funds during a period of sharp sell-off that heavily impacted publicly traded crypto companies.
According to ARK's daily trade disclosure, the ARK Innovation ETF acquired 191,195 shares of Bullish, while the ARK Next Generation Internet ETF (ARKW) purchased 56,660 shares. The ARK Fintech Innovation ETF (ARKF) added 29,208 shares to its portfolio. Bullish (BLSH) closed the trading day down 4.5% at $36.75, marking its lowest price point since its public debut.
Anticipation of Third-Quarter Earnings
The timing of ARK's investment aligns with Bullish's upcoming third-quarter earnings report, which is scheduled for release on Wednesday. In the second quarter of the year, the exchange reported adjusted revenue of $57 million, a decrease from the $67 million reported in the same period the previous year. Despite the revenue dip, Bullish achieved a net income of $108.3 million, a notable improvement from a net loss of $116.4 million in the prior year's second quarter.
Bullish's stock (BLSH) has experienced a significant decline, falling nearly 46% over the past six months. The stock has struggled to sustain momentum since its listing on the New York Stock Exchange in August, even after obtaining regulatory approvals for spot trading within the United States.
Broader Crypto Stock Sell-Off
Monday saw widespread selling pressure across crypto-linked stocks as digital asset prices experienced a retreat. Marathon Digital saw its stock drop by 4% and has been on a steady decline throughout the past week. Riot Platforms and CleanSpark also concluded the trading session in negative territory.
Circle, the stablecoin issuer that recently went public, ended Monday's trading session down more than 6%. The stock, $CRCL, has depreciated by over 26% in the last five trading days as selling pressure intensified across the crypto-related equities market.
MicroStrategy, the Bitcoin treasury company led by Michael Saylor, fell 2% on Monday. The stock has lost more than 18% over the past five trading sessions, coinciding with Bitcoin's pullback from recent highs.
Coinbase, the largest U.S. crypto exchange, closed down 7% at $263.95 after experiencing a slide throughout the session. This performance reflected the broader weakness observed across risk assets, as investors reduced their exposure to volatile sectors. Mining companies and infrastructure firms absorbed the most substantial losses during this downturn.