Cathie Wood’s Ark Invest is showing strong confidence in Bitmine Technologies (BMNR), even as the stock dips. On August 27, Ark Invest purchased 339,113 BMNR shares worth $15.6 million across three of its ETFs, despite a 7.85% drop in price. This move highlights growing faith in Tom Lee’s aggressive Ethereum (ETH) acquisition strategy.
Ark Invest Steps In During Stock Dip
Ark Invest took advantage of BMNR’s price decline by buying shares through multiple funds:
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ARK Innovation ETF (ARKK): 227,569 shares
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ARK Next Generation Internet ETF (ARKW): 70,991 shares
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ARK Fintech Innovation ETF: additional participation
These purchases add to over 1 million BMNR shares already held by Ark Invest. The move shows that Cathie Wood is backing Bitmine long-term, trusting Tom Lee’s plan to expand Ethereum reserves.
Bitmine’s ETH Treasury Strategy
Tom Lee’s firm, Bitmine Technologies, currently holds 1.7 million ETH, valued at roughly $7.81 billion. The company is planning to expand its at-the-market equity program from $4.5 billion to $24.5 billion to fund further Ethereum purchases.
This strategy has already boosted Bitmine stock by more than 750% since the ETH treasury plan was announced. Even billionaire investor Peter Thiel has invested over $500 million in the company last month, further signaling confidence in its growth.
Tom Lee: Building Ethereum’s Treasury Vision
Tom Lee is drawing comparisons to Michael Saylor, but for Ethereum. His firm recently added $800 million worth of ETH, more than doubling holdings compared to SharpLink Gaming (NASDAQ: SBET), which holds 797,000 ETH.
Following Ethereum’s recent pullback to around $4,300, Tom Lee predicted the bottom is in and expects a 20% rally, with ETH targeting $5,500.
Why This Matters
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Bitmine’s growing Ethereum treasury signals institutional confidence in ETH.
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Cathie Wood’s Ark Invest purchases highlight investor faith despite short-term volatility.
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Expanded equity programs enable Bitmine to continue building reserves efficiently.
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Ethereum could benefit from large corporate holdings, potentially stabilizing price and boosting adoption.
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FAQs
1. Why did Cathie Wood buy Bitmine stock?
She sees long-term potential in Tom Lee’s ETH treasury plan and bought $15.6 million in BMNR shares despite the recent price dip.
2. How much Ethereum does Bitmine hold?
Bitmine currently holds 1.7 million ETH, worth around $7.81 billion at current prices.
3. What is Bitmine’s equity program?
The company plans to expand its at-the-market equity program from $4.5 billion to $24.5 billion to fund additional ETH purchases.
4. How has the stock performed recently?
BMNR stock has surged over 750% since the ETH treasury plan announcement, despite recent volatility.
5. What’s Tom Lee’s outlook for Ethereum?
He predicts ETH could rally 20%, targeting $5,500, following a recent price pullback to around $4,300.