Cathie Wood binges on Bitcoin, Coinbase, and Tesla as investors flee

Kathy Wood lives up to her faith. While many investors are fleeing the Tesla and crypto space, his CEO of Arkinvest remains optimistic about the long-term value of Tesla, Bitcoin and crypto exchange Coinbase. We invest according to value.

According to Bloomberg, Ark Investment Management’s funds bought about 75,000 shares of Tesla this week, about 300,000 shares of Coinbase and more than 315,000 shares of beleaguered Grayscale Bitcoin Trust.

Such investments are not for the faint of heart. Tesla shares are down about 61% from their peak at the end of last year. Coinbase’s stock hit an all-time low this week, and he’s down more than 80% for the year. And Bitcoin, the largest cryptocurrency, has lost more than 60% of its value this year.

Admittedly, not everyone is convinced by Wood’s optimism.As wall street journal As reported this week, even many investors in the flagship ARK Innovation ETF are losing faith. The fund’s shares are down about 60% this year.

However, despite the recent FTX debacle that has shaken investor confidence in all things cryptocurrency, “our confidence in the underlying public blockchain infrastructure continues to grow as designed.” said Frank Downing, Research Director at ARK. a video The company posted on Twitter earlier this month.

saturday wood murmured“Bitcoin’s blockchain didn’t skip a beat during the crisis caused by opaque centralized players. No wonder Sam Bankman-Fried didn’t like Bitcoin. It’s transparent and decentralized. He couldn’t control it.”

Her firm also shared data on bitcoin trading, showing that the supply of cryptocurrencies held by long-term holders remained flat throughout November, suggesting that these investors are “long-term investors” despite the turmoil. In a Bloomberg interview last month, she repeated her prediction that Bitcoin will reach $1 million by 2030 (it is currently below $17,000). ), said, “Get out of this rose-like smell.”

As for Coinbase, she said the uncertainty surrounding FTX could actually help with that.

“This is an onshore regulated company,” Wood said in an interview with Bloomberg last month.

Coinbase CEO Brian Armstrong claimed at a crypto event just weeks before the collapse that Coinbase is a publicly traded company and much more transparent than FTX.

“You can read our financial statements,” Armstrong said. “They are audited by a third party so you don’t have to trust us. All client funds are segregated. ”

Earlier this week, French accounting firm Mazar suspended operations to guarantee assets held by crypto exchange Binance and other industry players. Crypto firms were unable to strike deals with Big 4 accounting firms as they sought to build credibility amid the FTX impact.

Wood recently reiterated that he wasn’t worried about Tesla.This week, a major shareholder called for a new CEO to replace Elon Musk. Elon Musk, he claimed, was too preoccupied with restructuring Twitter to do his job right.

According to a recent study by S&P Global Mobility, more automakers will enter the EV space with lower-priced alternatives, especially sub-$50,000 models that “Tesla isn’t really competitive yet.” Tesla’s EV market share is projected to fall from 65% this year (through Q3) to less than 20% by 2025.

But Tesla “has a disproportionate share of a market that we believe will account for 85% to 95% of all cars sold globally by 2027, and will continue to do so,” she said. told Bloomberg. “It’s autopilot.”

Amidst doubts about his investments and strategies, Wood said recently that companies participating in his fund are “sacrificing short-term profitability for exponential and profitable long-term growth.” I am,” he tweeted.

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