Cathie Wood said she currently owns more than $7 million worth of bitcoin, which she bought on the advice of Reagan-era economist Arthur Laffer when it was trading at $250.
The CEO of ARK Investment Management shared this information last week in a podcast interview titled What Bitcoin Did with Peter McCormack. She added that she invested $100,000 in bitcoin, which is now worth over $7 million.
Although Wood didn’t reveal the year she bought it cryptocurrencythe price at which she bought it suggests it was sometime in 2015.
She also added that she did not sell any of her initial investments.
Laffer was Wood’s teacher at the University of Southern California who asked her to look into Bitcoin.
Laffer informed her that Bitcoin is a rules-based monetary system and has been looking for it “since we left the gold standard.”
When asked by Wood how massive Bitcoin could get, Laffer responded by saying, “How big is the U.S. monetary base?” Around this year, Bitcoin’s market capitalization was around $6 billion and the U.S. monetary base was $4.5 trillion.
Calculated based on the current price of approximately $19,250, Wood made a huge profit of over $7.6 million on her $1,000,000 investment.
However, she was not able to achieve such success with the company she co-founded because, until recently, it was not allowed to operate ARK funds beyond investing in securities.
ARK Investment Management focuses on inventive and groundbreaking investments. The company’s value soared during the 2020 stock market boom, and its investments in unprofitable tech companies yielded lucrative returns, driving massive amounts of money into its ETFs.
Although ETFs are confined to investing in securities, Ark began exploring ways to invest in bitcoin through products like the Grayscale Bitcoin Trust and eventually added them to several funds.
Image source: Shutterstock
. . .
