Cathie Wood’s Ark Invest Adds $10M in Bullish Shares Amid Downturn
- Ark Invest buys $10.2M in Bullish shares, showing confidence amid market challenges.
- Bullish stock drops, while increased stake purchases capitalize on the market downturn.
- Ark Invest eyes Bullish’s Q3 earnings report, awaiting signs of recovery in the market.
Cathie Wood’s investment company has continued to buy shares of Bullish. According to a disclosure from Ark Invest, the ARK Innovation ETF (ARKK) purchased 191,195 shares of the crypto exchange on Monday. The ARK Next Generation Internet ETF (ARKW) added 56,660 shares, and the ARK Fintech Innovation ETF (ARKF) acquired 29,208 shares.
These transactions follow earlier purchases this month that involved about 238,000 shares valued at roughly $12 million across Ark’s funds. Ark initially bought $172 million worth of Bullish shares during the company’s August listing and continued adding positions in the weeks that followed.
Bullish’s share price moved lower despite Ark’s buying activity. On Monday, the stock closed down 4.5% at $36.75, well below the high of $75 reached around its listing. The decline capped months of weakness for crypto-related equities and illustrates the risk Ark is willing to assume to increase its exposure to digital asset infrastructure.
In the previous month, Ark’s funds also added more than $8 million worth of Bullish shares when the exchange secured a BitLicense from New York regulators. As a result of these purchases, Bullish now represents just under one per cent of each of Ark’s three funds, illustrating a measured approach to portfolio weighting.
Market Downturn and Impact on Crypto Stocks
The latest purchases occurred against a backdrop of heavy selling in crypto-linked equities. Shares of Marathon Digital fell steadily throughout the past week, while Riot Platforms and CleanSpark also closed in negative territory. MicroStrategy’s stock has lost roughly 12% over the past five trading sessions.
These declines highlight the sensitivity of mining and infrastructure firms to broader market volatility. At the same time, MicroStrategy added 8,178 Bitcoin to its reserves, underscoring the company’s ongoing commitment to its treasury strategy.
Investors have attributed the slump in crypto stocks to multiple factors, including declining digital asset prices and broader risk aversion. While Bitcoin’s price sits below recent highs, the cost pressures from energy, regulatory uncertainty, and shifting interest-rate expectations have weighed on mining firms’ profitability.
Even stablecoin issuers have not escaped the sell‑off. Although not directly related to mining, the turbulence in the digital asset market has pressured valuations across the sector. Ark’s continued accumulation suggests that the firm views current prices as an opportunity to gain exposure despite the short‑term headwinds.
Related: Bullish Stablecoin Debuts in Europe as U.S. Waits on Rules
Bullish’s Financial Outlook and Regulatory Progress
Bullish plans to release its third‑quarter results on 19 November. The exchange expects to generate total adjusted revenue between $69 million and $76 million, including $25.5 million to $28 million of transaction revenue. Management believes that liquidity services and subscription products will be key contributors.
In the second quarter, Bullish recorded $57 million in adjusted revenue, down from $67 million in the same period of the previous year, but it turned a net profit of $108.3 million compared with a loss of $116.4 million a year earlier. Analysts will be watching the upcoming report to gauge whether revenue growth has resumed after the year‑over‑year decline.
The company has also focused on expanding its regulatory footprint. In September, Bullish obtained a BitLicense from the New York State Department of Financial Services, allowing it to offer spot trading and custody services to institutional clients. This approval enabled Bullish to launch spot trading in twenty U.S. states.
Before obtaining the license, the firm operated under regulatory frameworks in Germany, Hong Kong, and Gibraltar. The ability to serve U.S. clients aligns with Bullish’s plan to broaden its presence, and it has processed over $1.5 trillion in cumulative trading volume since 2021.
