Cathie Wood Sees Value In Tesla Wreckage As Ark Buys $13M Worth Of EV Giant’s Stock, Loads Up On Bitcoin And Ethereum ETFs – ARK Innovation ETF (ARCA:ARKK)
As Tesla, Inc. TSLA fell for a fifth straight session on Thursday, breaching a significant psychological threshold, Cathie Wood ‘s Ark Investment Management ramped up its acquisition of the stock, while also bolstering its holdings in crypto-related exchange-traded funds. Doubling Down On Tesla : Across its ARK Innovation ETF ARKK, ARK Autonomous Technology & Robotics ETF ARKQ, and ARK Next Generation Internet ETF ARKW, Ark purchased 88,720 Tesla shares on Thursday, amounting to approximately $13.30 million based on Tesla’s closing price of $149.93. Ark has been consistently accumulating Tesla shares for three consecutive sessions this week, accumulating a total of $26.89 million worth of shares. This surge in buying activity comes amid Tesla facing downward pressure throughout the week, with analysts revising their estimates and price targets downward in anticipation of a disappointing earnings report next week. Concerns about the company’s recent announcement of significant layoffs, plans to seek shareholder approval for CEO Elon Musk ‘s compensation package, and uncertainties surrounding the potential deprioritization of the sub-$30,000 electric vehicle have all contributed to the stock’s weakness. On Thursday, Tesla closed at its lowest level since January 25, 2023. See Also: Best ETFs To Buy Right Now Expanding Crypto Exposure : While Ark has been gradually reducing its exposure to crypto-related stocks like Coinbase Global, Inc. COIN and Robinhood Markets, Inc. HOOD, it refrained from trading these shares on Thursday. Instead, Ark augmented its positions in ETFs with crypto exposure. ARKW bought 22,461 units of ARK 21Shares Active Ethereum Futures Strategy ETF ARKZ valued at $823,645. Ark’s ARK Fintech Innovation ETF ARKF 490,751 units of its recently launched spot Bitcoin BTC/USD ETF, the ARK 21Shares Bitcoin ETF ARKB valued at $31.19 million. Ark’s ARKW added 42,800 Proshares Ether Strategy ETF EETH valued at $2.90 million. ARKB, which commenced trading on Jan. 11, 2024, has appreciated by approximately 36%, riding on the coattails of Bitcoin’s rally, which has surged by about 34% since its inception. On the other hand, ARKZ, an actively managed ETF launched by the Wood-led firm, aims for 100% exposure to Ethereum ETH/USD by investing in ether futures contracts. The fund, boasting approximately $11 million in net assets, has yielded approximately 24% year-to-date. Meanwhile, Bitcoin has strengthened amid escalating geopolitical tensions in the Middle East. At last check, the premier cryptocurrency climbed by 0.72% over the past 24 hours to reach $62,141.40, according to Benzinga Pro data. ARKK fell 0.26% on Thursday before closing at $42.91. Read Next: 5 Technologies That Could Be Worth $220 Trillion By 2030, Cathie Wood’s ARK Predicts: ‘The Time Is Now’ © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Posted In: CryptocurrencyEquitiesLong IdeasNewsSpecialty ETFsTop StoriesMarketsTrading IdeasETFsARK Investment ManagementCathie Woodelectric vehiclesEVsmobility Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.