The company ARK Invest, run by Cathie Wood, made a reckless purchase of shares эфириум- treasury company BitMine.
On November 13, the organization acquired 242,347 BitMine shares worth approximately $9,5 million at the exchange rate at the time. Last week, the company has acquired 240,507 of the institution’s assets amounting to $9 million. Thanks to these transactions, three funds ARK Invest accumulated 6,9 million BitMine shares, which are now worth $253,7 million.
Cathie Wood’s company began investing in BitMine in April this year after it was turned into эфириум- a treasury firm. However, after a brief bullish rally that ended in early July, BitMine shares entered a bearish trend, and their price fell 77%.
BitMine stock price falls
However, the downward trend in the BitMine asset market is unlikely to end. Ethereum’s price has begun to decline again this week, approaching $3,000. If this support barrier is broken, the coin’s value risks collapsing to $2,500 or even lower. In this case, BitMine’s share price will also decline, so employees ARK Invest took a big risk by purchasing the company’s securities.
Clearly, management should have waited for the ETH market to end its bearish trend to buy shares at the bottom at a much better price.