Cathie Wood’s ARK Invest has increased its exposure to Tom Lee’s Ether treasury firm BitMine while reducing its holdings in Tesla.
According to the firm’s daily trading disclosures on Friday, ARK purchased 48,454 shares of BitMine, worth roughly $2 million.
The shares were acquired across three of ARK’s ETFs: ARK Innovation (ARKK), ARK Fintech Innovation (ARKF), and ARK Next Generation Internet (ARKW).
Wood’s funds have been steadily adding to BitMine positions since April, when the company began accumulating Ether as a treasury asset.
BitMine shares rose 7.65% in after-hours trading to $40.23, marking a year-to-date gain of 415%, according to Google Finance.
Tesla stake reduction
At the same time, ARK sold around 71,638 Tesla shares across its funds, a position valued at about $30 million based on Tesla’s closing price of $429.52.
The ARKK and ARKW ETFs both reduced their Tesla holdings.
Tesla has been a cornerstone of ARK’s portfolio since 2018.
The move follows shareholder approval of CEO Elon Musk’s nearly $1 trillion pay package, with 75% of voting shares in favor despite opposition from proxy advisors Glass Lewis and ISS.
The package, announced at Tesla’s annual meeting in Austin, Texas, will boost Musk’s ownership from roughly 13% to 25% if Tesla meets certain milestones.
Musk will receive 12 tranches of stock tied to performance goals, starting at a $2 trillion market cap and scaling to $8.5 trillion.
BitMine faces significant unrealized losses
BitMine is currently sitting on about $2.1 billion in unrealized losses linked to its Ether reserves, following the crypto market downturn, according to CryptoQuant.
The company holds nearly 3.4 million ETH, having acquired over 565,000 in the past month.
