TLDRs;
Contents
- BitMine stock fell 11.6% in five days, but Ark Invest bought $15.6M worth of shares across three ETFs.
- Ark’s contrarian strategy highlights institutional conviction, buying on dips rather than chasing market momentum.
- BitMine holds 1.71M ETH worth $7.9B, giving Ark indirect Ethereum exposure through regulated stock purchases.
- Stock remains up 534.9% year-on-year, despite recent volatility, underscoring its strength as a crypto proxy.
Bitmine Immersion Technologies, Inc. (BMNR), a treasury firm holding large Ethereum reserves, has experienced a turbulent trading week.
Shares fell 7.85% on Wednesday, closing at $46, and extended their losses to 11.6% over five days. Despite the decline, Cathie Wood’s Ark Invest used the pullback as an opportunity, scooping up $15.6 million worth of BitMine shares across three of its exchange-traded funds (ETFs).
According to filings, Ark’s flagship Innovation ETF (ARKK) acquired 227,569 shares, while the Next Generation Internet ETF (ARKW) purchased 70,991 shares, and the Fintech Innovation ETF (ARKF) added 40,553 shares. This brings Ark’s total purchase to more than 339,000 shares.
BitMine Holds $8.8B in Assets
Despite the market volatility, BitMine remains a significant player in the digital asset sector. The firm disclosed that its treasury contains $8.8 billion in cryptocurrency and cash reserves, with the majority held in 1.71 million ETH, valued at approximately $7.9 billion.
This massive Ethereum position gives BitMine outsized exposure to the second-largest cryptocurrency by market capitalization, and in turn, provides Ark Invest a way to gain indirect ETH exposure through regulated equity markets.
While the recent stock performance may appear bearish, BitMine’s longer-term trajectory tells a different story. The stock remains up 534.9% year-on-year, underscoring its role as a proxy for institutional crypto exposure.
Buying the Dip: Ark’s Contrarian Play
Ark Invest’s purchase came on the very day shares slipped 7.85%, signaling confidence in the company’s long-term fundamentals. Rather than chasing momentum, Cathie Wood’s team leaned on its contrarian investment philosophy, buying into weakness when others were selling.
Cathie Wood’s ARK Invest increases position in $BMNR BitMine Immersion, adding 334K shares over the past 3 days on the dip https://t.co/KjJPnM62nn pic.twitter.com/YCdf8KDZ0F
— Bart (@alwaysbetmore) August 28, 2025
This move aligns with Ark’s broader thesis on digital assets. Cathie Wood has previously projected that Bitcoin could reach $3.8 million by 2030, and Ethereum is expected to play a crucial role in decentralized finance and Web3 adoption. By securing BitMine shares during a downturn, Ark is effectively positioning for upside while keeping regulatory compliance intact.
Importantly, BitMine currently trades at a market-to-net-asset-value ratio of 1.0, meaning the stock price reflects its underlying crypto holdings rather than carrying a speculative premium. This valuation could have reinforced Ark’s conviction in accumulating shares at current levels.
Institutional Pathways to Crypto Exposure
Treasury companies like BitMine offer a bridge between traditional finance and digital assets, enabling large institutions to gain exposure to cryptocurrencies without directly holding tokens.
For asset managers like Ark, this approach is crucial. ETFs face strict compliance requirements, and purchasing equity in a crypto treasury firm provides a cleaner, more scalable solution than holding ETH directly. BitMine’s role as a listed entity with billions in digital assets makes it one of the few viable vehicles for institutional crypto allocation in equity markets.
As ARK continues to expand its holdings across crypto-adjacent firms, including recent stakes in Bullish and Robinhood, its BitMine bet reinforces the strategy of building diversified exposure across the blockchain ecosystem.
