Ark Invest purchases $37 million in Block Inc. shares as stock dips

Ark Invest adds to Block Inc. holdings

Cathie Wood’s Ark Invest bought roughly $37.4 million worth of shares in Block Inc., the fintech company led by Jack Dorsey, on Monday. The purchase came as Block’s stock price fell by 1.85% to close at $82.02.

According to trading disclosures, Ark acquired 456,059 shares across three of its exchange-traded funds (ETFs), which are investment funds that trade on stock exchanges like individual stocks: the Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Blockchain & Fintech Innovation ETF (ARKF).

Additional purchase of Circle shares

Ark also bought 35,192 shares of Circle Internet Group, worth about $3.36 million. Circle’s stock rose 9.65% on Monday to $95.55, recovering from a 7.5% drop the previous Friday.

Key numbers

• 456,059 Block Inc. shares purchased, valued at $37.4 million
• Block’s stock closed at $82.02, down 1.85% on Monday
• 35,192 Circle shares purchased, valued at $3.36 million
• Circle’s stock closed at $95.55, up 9.65% on Monday

Why this purchase stands out

Ark Invest’s strategy limits any single holding to no more than 10% of a fund’s portfolio to maintain diversification. Last month, Ark had also bought a large number of Block shares after the company raised its full-year profit forecast to $12.5 billion, a 21% increase. However, analysts at Mizuho have noted concerns about Block’s rising operating costs, despite a 40% reduction in staff earlier this year as it shifts toward artificial intelligence.

Circle, a stablecoin issuer, has seen its stock rise 52.6% over the past month. Analysts at Bernstein recently gave Circle an Outperform rating with a $140 price target, citing growth potential in stablecoin adoption and blockchain-based financial markets.

Sources

• The Block