Cathie Wood’s ARK Invest increased its exposure to BitMine, Tom Lee’s Ether treasury firm, while reducing its position in Tesla.
According to the company’s daily trading disclosure on Friday, ARK purchased a total of 48,454 shares of BitMine (worth approximately $2 million) across three of its ETFs, including the ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF) and ARK Next Generation Internet ETF (ARKW).
Wood’s mutual funds have been increasing their exposure to BitMine since the company began accumulating Ether (ETH) as a treasury asset in April.
BitMine shares rose 7.65% on the day, reaching $40.23 in after-hours trading, According to to Google Finance. Since the beginning of the year, the company’s shares have gained as much as 415%.
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ARK is getting rid of Tesla shares
Meanwhile, ARK sold approximately 71,638 Tesla shares in its funds, a position valued at approximately $30 million based on Tesla’s closing price of $429.52. Both the ARKK ETF and ARKW ETF have reduced their holdings in Tesla, which has been one of ARK’s flagship positions since 2018. Tesla shares fell 3.68% that day.
The move comes as Tesla shareholders do approved CEO Elon Musk’s nearly $1 trillion compensation package, with 75% of voting shares supporting the proposal despite opposition from top proxy advisors Glass Lewis and ISS.
The decision, announced at Tesla’s annual meeting in Austin, Texas, will escalate Musk’s control over the company, increasing his stake from about 13% to 25% if Tesla hits certain milestones. The package provides Musk with 12 tranches of shares tied to performance goals, starting at a market capitalization of $2 trillion and rising to $8.5 trillion.
Related: Cathie Wood’s ARK Invest adds $12 million in Bullish shares as options trading surges
BitMine has losses of $2 billion
According to CryptoQuant, BitMine currently has approximately $2.1 billion in unrealized losses related to its Ether reserves, as the recent cryptocurrency market crash has caused ponderous losses for companies dealing in the digital asset treasure trove.
According to the industry, BitMine currently holds almost 3.4 million ETH after acquiring over 565,000 over the past month data.
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