Here's something interesting: While everyone was watching Bitcoin crash toward $91,000 on Monday, Cathie Wood's Ark Invest was busy writing a $10 million check for shares in a crypto exchange most people haven't heard of yet.
The firm scooped up 277,063 shares of Bullish (BLSH) across three different ETFs, betting big on the Peter Thiel-backed platform that's positioning itself as a serious rival to Coinbase. The purchases broke down to 29,208 shares through the Ark Fintech Innovation ETF (ARKF), 191,195 shares via the ARK Innovation ETF (ARKK), and 56,660 shares through the ARK Next Generation Internet ETF (ARKW). At Monday's closing price of $36.75, that's roughly $10.02 million in fresh capital flowing into a company that's trying to eat Coinbase's lunch.
Buying the Dip, or Catching a Falling Knife?
The timing is either brilliant or questionable, depending on how you look at it. Bitcoin (BTC) was sliding toward $91,000 and Ethereum (ETH) dipped below $3,000 on Monday as the broader crypto market took another beating. Analysts were frantically flagging key support zones around $90,000 for Bitcoin and $2,800 for Ethereum, warning that if selling pressure keeps up, we could see those levels tested. Some traders noted that despite the sharp losses, the market structure for both cryptocurrencies remains intact for now, which is trader-speak for "it could be worse."
This isn't Ark's first rodeo with Bullish either. Wood has shown consistent interest in cryptocurrency exchanges, particularly those backed by influential Silicon Valley figures like Thiel. The conviction play suggests Ark sees something the market might be missing, or at least believes the current crypto downturn presents a buying opportunity.
Worth noting: Bullish is set to report third-quarter earnings on Wednesday, with an earnings conference scheduled for 8:30 a.m. ET the same day. That's going to be an interesting call to listen to.
Meanwhile, Ark Takes Profits Elsewhere
While loading up on crypto exposure, Ark was simultaneously trimming fat from other positions. The firm reduced its stake in Reddit Inc. (RDDT), selling 5,632 shares from ARKF and 10,908 shares from ARKW. Based on Reddit's closing price of $187.55, that sale was worth approximately $3.1 million. Combined with other recent sales, Ark has now offloaded $7.5 million worth of Reddit shares as it adjusts its portfolio amid tech sector volatility.
Pinterest Inc. (PINS) also got the haircut treatment. Ark sold 24,220 shares from ARKK, valued at approximately $618,094 at the closing price of $25.52.
Pinterest has been losing momentum lately, and the numbers tell the story. The company's third-quarter revenue hit $1.05 billion, which matched estimates, but adjusted earnings per share of 38 cents missed expectations. The bright spot was monthly active users, which climbed 12% to a record 600 million, helping push revenue up 17% year over year. Pinterest highlighted strong cash flow and said its AI-driven shopping and visual search tools are boosting advertiser demand. Still, the company's fourth-quarter revenue guidance of $1.31 billion to $1.34 billion came in slightly below consensus, which probably didn't help the stock's case for staying in Ark's portfolio.
Other Notable Moves
Ark was busy across the board Monday. Here's what else went down:
- Purchased 25,137 shares of Tempus AI Inc (TEM) through ARKG and 72,024 shares through ARKK.
- Bought 52,051 shares of Twist Bioscience Corp (TWST) via ARKG and 340,895 shares through ARKK.
- Acquired 10,877 shares of Beam Therapeutics Inc (BEAM) in ARKG and 40,709 shares in ARKK.
- Sold 45,434 shares of Veracyte Inc (VCYT) from ARKK and 6,937 shares from ARKG.
- Reduced position in Iridium Communications Inc (IRDM) across ARKK, ARKQ, and ARKX.
What the Data Says
According to market data analysis, Bullish struggles on short, medium, and long price trends compared to other crypto platforms like Coinbase. That makes Ark's aggressive buying even more intriguing. Either Wood sees a turnaround coming that the charts don't show yet, or she's betting that Peter Thiel's backing and the company's fundamentals will eventually override the technical weakness.
The big question now is whether Ark's contrarian bet pays off. With crypto markets in turmoil and Bullish's earnings report dropping Wednesday, we're about to get a lot more clarity on whether this was genius-level bottom fishing or a premature plunge into choppy waters. Stay tuned.
