ARK Invest has recently increased its holdings in BitMine, a company that now possesses one of the largest corporate treasuries of Ethereum (ETH). Concurrently, the firm has reduced its investment in Tesla, its long-standing favored holding.
According to ARK's daily trade reports, the investment firm acquired over 48,000 shares of BitMine across three of its primary exchange-traded funds: ARK Innovation (ARKK), ARK Fintech Innovation (ARKF), and ARK Next Generation Internet (ARKW). This acquisition, valued at approximately $2 million, signifies ARK's ongoing commitment to companies operating within the blockchain ecosystem.
BitMine's Ethereum Treasury Strategy Attracts Institutional Attention
BitMine has garnered attention for its distinctive balance-sheet strategy, which centers on Ether as its principal reserve asset. As of late October, the company held close to 3.4 million ETH, representing billions of dollars in crypto assets under management. This substantial holding rivals that of early corporate adopters of Bitcoin, such as MicroStrategy.
The company commenced its accumulation of Ether in April, beginning to convert its cash reserves into digital assets. Since then, BitMine has added more than half a million ETH in a single month, demonstrating a strong belief in Ethereum's future as programmable financial infrastructure.
Despite this strategic shift, the company has experienced financial challenges. Data from CryptoQuant indicates that BitMine is currently holding approximately $2.1 billion in unrealized losses due to the recent market downturn and the decline in Ether's price.
Nevertheless, investor confidence remains robust. BitMine shares have seen a significant increase of over 400% in 2025, closing at $40.23 in after-hours trading on Friday, marking a 7.6% rise for the day, according to Google Finance. Many industry observers now regard BitMine as a key indicator of the growing trend of "crypto treasury" firms that are positioning themselves at the intersection of traditional finance and blockchain networks.
Tesla Holdings Trimmed Amid ARK's Portfolio Rebalancing
In parallel with its increased exposure to crypto assets, ARK has decreased its stake in Tesla, the electric vehicle manufacturer that has been a cornerstone of its portfolio for an extended period. On the same day it acquired BitMine shares, ARK divested approximately 71,600 Tesla shares, a position valued at nearly $30 million based on Tesla's closing price of $429.52.
This decision follows a period of financial scrutiny for Tesla and renewed focus on its leadership. Earlier in the week, shareholders approved Elon Musk's substantial pay package, estimated to be worth close to $1 trillion, despite opposition from prominent proxy advisory firms, Glass Lewis and ISS. This approval solidifies Musk's control over Tesla and could potentially increase his ownership stake from 13% to approximately 25% if performance targets are met.
Tesla's stock experienced a 3.7% decline on Friday, reflecting investor concerns regarding the cost of the compensation plan and the company's declining profit margins in its primary vehicle manufacturing sector.
ARK's Evolving Investment Strategy
Cathie Wood's investment philosophy has historically centered on disruptive technologies, encompassing areas such as autonomous vehicles, genomics, fintech, and digital assets. However, recent trading activity suggests a more pronounced emphasis on crypto-related investments. In addition to BitMine, ARK recently expanded its stake in Bullish, a regulated cryptocurrency exchange operator, with a $12 million investment earlier this month.
Market analysts interpret this strategic shift as a response to evolving macroeconomic conditions. With indications of moderating inflation and expanding institutional adoption of crypto exchange-traded funds (ETFs), ARK appears to be strategically positioning itself for what Wood has previously termed a "new era for blockchain capital markets."
Her optimistic outlook on Ethereum and digital treasuries contrasts with her more cautious stance on Bitcoin. Wood recently observed that "stablecoins and tokenized treasuries are gradually capturing liquidity that once flowed into Bitcoin," highlighting her preference for diversified blockchain exposure over concentration in a single asset.
The Increasing Significance of Crypto in Corporate Balance Sheets
BitMine's accumulation of Ethereum reflects a broader trend that is influencing corporate finance. A growing number of companies are now considering crypto assets as a treasury hedge, moving away from traditional holdings like cash or government bonds. This approach combines speculative risk with potential long-term strategic advantages.
For ARK, aligning with such forward-thinking companies reinforces its reputation as a pioneer investor. The ultimate success of this strategy may depend less on short-term performance and more on Ethereum's continued establishment as a global settlement layer.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.