Wood's Fund Bets Big on Crypto-Friendly Stocks
Cathie Wood's Ark Invest has been buying up stocks in companies that have ties to cryptocurrency, including Coinbase Global (NASDAQ: COIN), Circle Internet Group (NYSE: CRCL), and Robinhood Markets (NASDAQ: HOOD). These three make up a significant portion of her ARK Innovation ETF (NYSEMKT: ARKK) portfolio.
The companies are exposed to potential upside from cryptocurrency, with Coinbase's subscription and services revenue reaching $555 million in Q2, 88% of which came from sources other than Bitcoin spot trading. Circle issues the second-largest stablecoin by market cap, USDC, with $74 billion in circulation, capturing interest payments earned from its reserves.
Cathie Wood has been buying these stocks despite their recent downturns, investing $16.3 million in Circle on March 24 and another $13.9 million in mid-July. Ark Invest also bought about $8 million of Coinbase shares on Aug. 2 after a disappointing quarter sent the price lower.