Cathie Wood’s Firm Signals Possible Strategic Shift After Months of Selling
ARK Invest has returned to buying shares of Jack Dorsey’s financial services company, Block, ending a months-long selling streak that had reduced its stake in the firm.
According to a trade filing, the investment firm purchased 262,463 shares on Monday at an average price of $73, bringing the total value of the acquisition to $19.2 million. The move comes as Block’s stock has risen 8% over the past 30 days, suggesting renewed confidence in the company’s growth trajectory.
The purchase was spread across three of ARK’s exchange-traded funds: the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). ARKK acquired the largest portion, 152,980 shares, lifting its total stake to 1.34 million shares worth $97.7 million.
Including holdings in ARKW and ARKF, ARK Invest now owns approximately 2.6 million shares of Block, valued at $193 million.
“When you see ARK reverse course after such a long pause, it usually means they see a short-to-medium term upside that outweighs prior concerns,” commented U.S.-based portfolio manager.
End of the Selling Trend?
In July alone, ARK offloaded more than 551,000 Block shares—worth about $40 million—continuing a multi-year trend of trimming its position. Monday’s acquisition marks the first recorded purchase in 2025 and could point to a recalibration of exposure to fintech stocks amid improving market sentiment.
Strong Fundamentals, Volatile Stock Performance
Block recently reported $2.54 billion in Q2 profit, with gross profit climbing 14% year-over-year. Its Cash App platform delivered $1.5 billion in gross profit, and Bitcoin account users surged to 8 million.
Still, despite a rebound since May, Block shares remain down 21% from January highs. Analysts say ARK’s re-entry could help stabilize investor sentiment, but the stock’s near-term performance will hinge on broader market conditions and Q3 results.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.