Bitcoin retracement intensifies, ARK buys the dip in COIN, Circle, and mining company stocks
Amid a sharp decline in Bitcoin and increasing market tension, ARK Invest CEO Cathie Wood has chosen to buy more crypto-related stocks against the trend. As Bitcoin fell below $70,000 for the first time since November 2024, the volatility in the digital asset market significantly increased, but ARK’s actions are seen as a renewed bet on the industry’s long-term value.
On February 3, ARK purchased shares of companies including COIN, Circle, BitMine Immersion Technologies, and Bullish through multiple funds. Among them, ARK spent over $1.3 million to buy 3,510 shares of COIN. Circle, as the issuer of USDC, also received increased holdings from two of ARK’s core funds, totaling approximately $8.7 million. ARKK bought 34,342 shares, and ARKF bought 8,536 shares.
Meanwhile, ARK also increased its holdings in BitMine by about $6 million, acquiring 145,488 shares. The company, chaired by Tom Lee, is involved in Bitcoin mining and Ethereum asset allocation. Bullish was also added to the list of increased holdings, with ARK acquiring 125,218 shares valued at about $3.5 million. The company was early supported by Block.one and received investment from Thiel Capital, owned by Peter Thiel.
On February 4, ARK continued to buy shares of Bullish and Circle, while also increasing its holdings in its own Bitcoin ETF products. By February 5, COIN accounted for 4.29% of ARK Innovation ETF’s portfolio, ranking as the fifth-largest holding; the weights of Circle, BitMine, and Bullish in the fund also continued to rise.
These moves occurred amid a dramatic adjustment in the crypto market. On February 5, Bitcoin briefly dropped to around $67,700, with a 24-hour decline of nearly 8%, and the total market capitalization of global crypto assets fell back to approximately $2.59 trillion. Sentiment indicators showed the market entering an “extreme panic” zone, with daily liquidations exceeding $750 million.
In a highly volatile environment, Cathie Wood’s continued buying is interpreted by some investors as a long-term bullish outlook on blockchain infrastructure and the crypto financial ecosystem. Despite short-term price pressures, ARK’s allocation strategy indicates that it is positioning itself in advance for the next industry cycle.
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Analysis: The crypto market correction may be influenced by traditional financial factors, not an industry crisis.