Cathie Wood’s Ark Invest has reinforced its position in the digital asset sector, purchasing more than $20 million in crypto-related stocks during a significant market downturn. The move signals a continued bullish stance on the industry despite recent price declines across the board.

A Contrarian Bet on Crypto Equities

According to the firm’s latest trade filings, the recent acquisitions were spread across several of its exchange-traded funds (ETFs). The largest purchase was a $13.5 million investment in Block Inc., bringing Ark’s total holding to over $85 million. The firm also added $7.6 million worth of Circle Internet Group shares and nearly $3.9 million in Coinbase stock.

Smaller acquisitions included $2.8 million for its own ARK-21Shares Spot Bitcoin ETF, $1.52 million in Bullish, and just under $880,000 in Robinhood Markets. These purchases continue a weeks-long trend of Ark Invest increasing its exposure to the sector by buying into market weakness.

Navigating a Broader Market Downturn

The investment comes as crypto-linked stocks have faced intense selling pressure. Over the past month, Block has fallen more than 20%, while Coinbase has seen a 30% decline. Shares of USDC stablecoin issuer Circle have dropped by over 50% in the same period.

This downturn reflects a wider trend in the digital asset markets, where thin liquidity and macroeconomic uncertainty have taken a toll. Bitcoin has slipped nearly 25% over the last month, and the total market capitalization of stablecoins recently decreased by $4.6 billion. Markus Thielen, CEO of 10X Research, told Yahoo Finance that money isn’t just failing to come in but is actively leaving the crypto market.

Expanding into Ethereum-Linked Assets

Beyond its recent equity purchases, Ark Invest has also been increasing its exposure to companies focused on Ethereum. The firm recently bought over 240,000 shares of Bitmine Immersion, a company holding ETH in its treasury. Despite a nearly 50% drop in the last month, Bitmine’s shares have grown over 250% in the past year.

Speaking on Cathie Wood’s podcast in October, Fundstrat’s Tom Lee highlighted Bitmine’s potential, projecting that its upcoming staking solution could generate a significant pre-tax yield. He noted this could position it among the most profitable companies in the country, underscoring the strategic interest in Ethereum-based ventures.