Cathie Wood's ARK Invest has increased its exposure to Tom Lee's ether treasury firm BitMine while reducing its position in Tesla.
According to the corporate's every day trading disclosures on Friday, ARK purchased a complete of 48,454 shares of BitMine (price roughly $2 million) through three of its exchange traded funds (ETFs), including the ARK Innovation ETF (ARKK), the ARK Fintech Innovation ETF (ARKF), and the ARK Next Generation Internet ETF (ARKW).
Wood's investment funds have increased their exposure to BitMine because the company began accumulating Ether (ETH) as a treasury asset in April.
According to Google Finance, BitMine shares rose 7.65% on the day, reaching $40.23 in after-hours trading. The stock has gained a whopping 415% because the starting of the yr.
BitMine shares rose 7% on Friday. Source: Google Finance
ARK sells Tesla shares
Meanwhile, ARK sold about 71,638 Tesla shares across its funds, a position price about $30 million based on Tesla's closing price of $429.52. The ARKK ETF and ARKW ETF each reduced their holdings of Tesla, which has been one in all ARK's flagship holdings since 2018. Tesla shares fell 3.68% on the day.
The move comes after Tesla shareholders approved CEO Elon Musk's nearly $1 trillion pay package. 75% of voting shares supported the proposal despite opposition from major proxy advisors Glass Lewis and ISS.
The decision, announced at Tesla's annual meeting in Austin, Texas, will increase Musk's control over the corporate, increasing his stake from about 13% to 25% if Tesla achieves said milestones. The package grants Musk 12 tranches of stock tied to performance targets, starting at a market cap of $2 trillion and going as much as $8.5 trillion.
BitMine has suffered $2 billion in losses
According to CryptoQuant, BitMine is currently sitting on around $2.1 billion in unrealized losses related to its Ether reserves because the recent crypto crash has left digital asset treasury firms with heavy losses.
According to industry data, BitMine currently holds nearly 3.4 million ETH and has acquired greater than 565,000 ETH prior to now month.
