ARK Invest increases exposure to Ether-holding firm BitMine as Tesla shares drop 3.6% following approval of Elon Musk’s $1 trillion pay package.
Cathie Wood’s ARK Invest has expanded its position in BitMine, an Ether-focused treasury firm led by investor Tom Lee, while reducing its long-standing stake in Tesla. The move reflects a strategic rebalancing by one of the most closely watched innovation-focused investment managers amid shifting market conditions and evolving sentiment toward crypto-linked equities.
ARK Invest Boosts BitMine Exposure
According to ARK’s daily trading disclosure filed on Friday, the firm purchased 48,454 shares of BitMine, valued at approximately $2 million, across three of its major exchange-traded funds — the ARK Innovation ETF (ARKK), the ARK Fintech Innovation ETF (ARKF), and the ARK Next Generation Internet ETF (ARKW).
BitMine’s stock, which has skyrocketed 415% year-to-date, rose another 7.65% to $40.23 in after-hours trading, according to Google Finance data. The company began accumulating Ether (ETH) as a treasury asset in April 2025, positioning itself as one of the first publicly traded firms to treat Ethereum as a balance-sheet reserve.
ARK Sells $30 Million in Tesla Shares
In contrast, ARK offloaded about 71,638 Tesla shares, worth roughly $30 million based on the EV maker’s closing price of $429.52. Both the ARKK and ARKW funds trimmed their Tesla holdings — marking a notable reduction in a company that has been one of ARK’s flagship investments since 2018.
Tesla’s stock dipped 3.68% on the same day, following shareholder approval of Elon Musk’s nearly $1 trillion pay package. The plan, backed by 75% of voting shares, could boost Musk’s ownership stake from 13% to 25%, contingent on Tesla achieving performance milestones tied to valuations between $2 trillion and $8.5 trillion.
BitMine Faces Heavy Unrealized Losses
Despite the rally, BitMine currently holds around $2.1 billion in unrealized losses from its Ether reserves, according to data from CryptoQuant. The company’s balance sheet has come under strain amid the broader crypto market downturn, which has severely impacted digital asset treasury firms.
“Crypto treasuries are navigating one of their toughest quarters since 2022,” an analyst noted. “BitMine’s long-term value will depend on Ethereum’s recovery trajectory and its ability to manage balance-sheet risk.”
By rotating out of Tesla and adding exposure to BitMine, Cathie Wood’s ARK Invest appears to be repositioning its portfolio toward blockchain infrastructure and digital asset adoption. While BitMine’s Ether strategy carries significant short-term risk, ARK’s latest move signals continued conviction in the long-term potential of crypto treasuries as part of its innovation-driven investment thesis.
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.