ARK’s Cathie Wood Bought Bitcoin Years Ago for $100K, Currently Sitting on $7.6M Profit

UTC by Tolu Ajiboye · 3 min read
ARK’s Cathie Wood Bought Bitcoin Years Ago for $100K, Currently Sitting on $7.6M Profit
Photo: World Economic Forum / Flickr

ARK CEO Cathie Wood recently disclosed that she bought $100,000 worth of Bitcoin at $250 years ago and has never sold it.

Cathie Wood recently revealed that she purchased $100,000 worth of Bitcoin (BTC) years ago when it was trading at around $250. The referenced unit price of the popular crypto suggests Wood made the purchase sometime in 2015. Speaking on Peter McCormack’s “What Bitcoin Did” podcast, the ARK Investment CEO disclosed that she has not sold any of that initial investment. This suggests that her current profit on that $100,000 stake amounts to around $7.6 million.

Cathie Wood said she made the Bitcoin purchase after reading the Satoshi white paper. However, she explained that while she was able to make that personal bet on BTC, she could not do the same in the ARK funds themselves. This is because stipulations regarding the company only allow for investments in securities.

Nonetheless, ARK eventually secured Bitcoin exposure via the Grayscale Bitcoin Trust (GBTC). As it stands, the ARK Next Generation Internet Fund (ARKW) currently holds around 5.9 million shares of GBTC. Furthermore, the total value of said shares is approximately $67.4 million. The official website describes the initiative as:

“…an actively managed Exchange Traded Fund (ETF) that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and US exchange-traded foreign equity securities of companies that are relevant to the Fund’s investment theme of next generation internet.”

Cathie Wood Remains Upbeat on Bitcoin

Despite the string of turbulent phases BTC witnessed this year, Wood continues to be bullish on the leading digital currency. In addition, the ARK CEO sees the Grayscale Trust as trading at a “fire sale” price, provided that it may soon get the green light to convert into a spot exchange-traded fund. However, this speculation is still contingent on regulators allowing the Trust, which is currently selling at around a 35% discount to net asset value.

As of press time, BTC is changing hands at a fraction above $19K. Furthermore, the leading crypto is approximately 60% off its record high of $69K from last November.

ARK to Offer Crypto Strategies to Investment Advisors

In other news, it was previously reported that ARK would soon start offering crypto strategies to investment advisors. In addition, reports also stated that this development would happen via a collaboration with digital asset platform Eaglebrook.

ARK has been involved in crypto equity and security investment for a while now. By making its two actively-managed crypto strategies available to registered investment advisors, the platform looks to achieve another milestone. It is on course to expand its services beyond exchange-traded funds (ETFs).

Pursuant to ARK’s collaboration with Eaglebrook, the strategies would be available as Separately Managed Accounts. Speaking further on the development at the time, Wood said:

“The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration among other benefits.”

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Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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