As Tesla, Inc. (NASDAQ:TSLA) continued to decline for the fifth consecutive session on Thursday, Cathie Wood’s Ark Investment Management increased its acquisition of the stock and also boosted its holdings in crypto-related exchange-traded funds.
Doubling Down on Tesla: Ark purchased 88,720 Tesla shares on Thursday across its ARK Innovation ETF (NYSE:ARKK), ARK Autonomous Technology & Robotics ETF (CBOE: ARKQ), and ARK Next Generation Internet ETF (NYSE:ARKW), totaling approximately $13.30 million based on Tesla’s closing price of $149.93. This marked the third consecutive session of Ark accumulating Tesla shares this week, with a total of $26.89 million worth of shares acquired.
This surge in buying activity comes amidst Tesla facing downward pressure due to analysts revising their estimates and price targets downward in anticipation of a disappointing earnings report next week. Concerns about layoffs, CEO Elon Musk’s compensation package, and uncertainties surrounding the potential deprioritization of the sub-$30,000 electric vehicle have all contributed to the stock’s weakness. On Thursday, Tesla closed at its lowest level since January 25, 2023.
Expanding Crypto Exposure: While Ark has been reducing its exposure to crypto-related stocks like Coinbase Global, Inc. (NASDAQ:COIN) and Robinhood Markets, Inc. (NASDAQ:HOOD), it refrained from trading these shares on Thursday. Instead, Ark increased its positions in ETFs with crypto exposure.
ARKW purchased units of ARK 21Shares Active Ethereum Futures Strategy ETF (CBOE: ARKZ) valued at $823,645. ARKF acquired units of the ARK 21Shares Bitcoin ETF (CBOE: ARKB) valued at $31.19 million. Additionally, ARKW added units of Proshares Ether Strategy ETF (NYSE:EETH) valued at $2.90 million.
ARKB, which started trading on Jan. 11, 2024, has appreciated by approximately 36%, benefitting from Bitcoin’s rally. Meanwhile, ARKZ aims for 100% exposure to Ethereum by investing in ether futures contracts and has yielded approximately 24% year-to-date.
Bitcoin has strengthened amid escalating geopolitical tensions in the Middle East, climbing by 0.72% over the past 24 hours to reach $62,141.40. ARKK fell 0.26% on Thursday before closing at $42.91.