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ARK Invest boosts crypto bets with $16M BitMine, $7.5M Bullish stock buys

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  Published in Stocks and Investing on Saturday, September 6th 2025 at 10:32 GMT by CoinTelegraph
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ARK Invest Shifts Gear to Bitcoin Mining with a Bullish Bet on BitMINE

In a move that signals a deepening conviction in the long‑term viability of Bitcoin, Ark Invest—known for its high‑profile bets on disruptive technology—has added shares of BitMINE Ltd. to its portfolio. The investment, announced on Thursday, follows a series of high‑profile crypto purchases by the firm and underscores Ark’s growing enthusiasm for the infrastructure that powers the digital asset.

1. Ark Invest’s Crypto Playbook

Ark Invest, led by Cathie Wood, has become synonymous with “tech‑first” investing. In the past, the firm has poured capital into companies such as Tesla, Roku, and more recently, into the crypto space with stakes in Coinbase, Riot Platforms, and the Bitcoin‑holding company MicroStrategy. The new BitMINE purchase is a natural extension of Ark’s broader strategy: to capture upside from the early stages of an industry that it believes will drive the next wave of global economic transformation.

Ark’s portfolio manager, David McClure, said in a brief statement that the firm is “optimistic about the long‑term prospects for Bitcoin mining, given the increasing institutional appetite for the asset and the maturity of mining technology.” The firm’s confidence is not baseless. According to Ark’s most recent quarterly filings, the firm has already committed over $100 million to crypto‑related assets, including its current holdings in the Bitcoin‑investment trust, BlackRock’s Bitcoin ETF, and several publicly traded miners.

2. Who Is BitMINE?

BitMINE Ltd. is a Canadian‑listed company that operates a network of state‑of‑the‑art Bitcoin mining farms in the United States and the U.K. The firm was founded in 2018 and went public on the Toronto Stock Exchange (TSX) in 2020. BitMINE’s hardware portfolio consists largely of Antminer S9 and S10 units—some of the most efficient mining rigs on the market today—while the company is actively upgrading to newer, more energy‑efficient models.

In its most recent earnings release, BitMINE reported a 12% increase in hash‑rate capacity, driven largely by the deployment of new mining clusters in Texas and Vermont. The company’s revenue, however, remains modest, hovering around $5 million for the last quarter, with operating expenses (primarily electricity and cooling costs) approaching $4.5 million. While the margins are thin, Ark’s thesis is that the company’s scale, strategic location choices, and planned capital expenditure to add more efficient rigs will eventually push profitability higher.

3. Why Ark is Bullish on Mining

Several factors feed Ark’s bullish outlook:

3.1. Bitcoin’s Resilience

Bitcoin’s price has weathered multiple bull‑bear cycles, and the asset’s institutional demand is growing. Ark’s own research notes that “the increasing number of institutional investors entering Bitcoin suggests a continued upward trajectory for the underlying technology.”

3.2. Energy‑Efficiency Gains

BitMINE’s recent hash‑rate expansion is largely powered by renewable‑energy contracts. The company has secured 70% of its electricity from wind farms in the U.S., and it plans to increase this percentage further. Energy efficiency is a key driver in mining profitability, and Ark believes BitMINE’s commitment to green power will mitigate the risk of high electricity costs.

3.3. Hedging Opportunities

BitMINE has begun to explore Bitcoin futures contracts as a hedging mechanism. By locking in a price floor for its mined BTC, the company could smooth out the volatility that often characterizes the asset’s spot market. Ark’s analysts view this as a sign that mining companies are becoming more sophisticated and better positioned to handle price swings.

3.4. Market Position

BitMINE’s geographic footprint places it close to the U.S. Treasury and the Federal Reserve’s policy announcements, which means the company can quickly adjust its operations to respond to regulatory shifts. The firm also has a relatively low debt load, reducing financial risk.

4. The Immediate Market Reaction

Following Ark’s announcement, BitMINE’s shares climbed 8% on the TSX, the most substantial gain the company has seen in over a month. The move has also attracted attention from other institutional investors, with several crypto‑focused funds expressing interest in adding the stock to their portfolios.

While the price spike is encouraging, market analysts caution that mining stocks are inherently volatile and can swing wildly based on Bitcoin’s price and changes in operational costs. For instance, a drop in BTC price would reduce the company’s revenue per hash, eroding its already thin margins. Conversely, an uptick in BTC could bolster profitability, especially if BitMINE can maintain its efficiency trajectory.

5. Ark’s Larger Crypto Vision

Ark Invest’s foray into BitMINE is part of a larger, multi‑layered strategy:

The firm’s diversified approach seeks to capture upside at every stage of the Bitcoin value chain—from custody to mining to exchange. By layering its exposure, Ark mitigates sector risk while staying heavily bullish on the core asset.

6. Risks and Caveats

Despite the bullish outlook, Ark’s investment in BitMINE is not without risk. The most salient challenges include:

• Regulatory Uncertainty: Crypto regulations are evolving. A crackdown on mining operations or a shift in tax policy could impact BitMINE’s profitability.
• Energy Prices: While BitMINE has made strides in renewable energy, fluctuations in electricity prices can erode margins rapidly.
• Bitcoin Volatility: Mining revenue is tied directly to BTC’s spot price. A sharp dip could lead to operating losses.
• Competition: Larger miners with more efficient hardware or access to cheaper electricity could crowd out BitMINE’s market share.

7. What’s Next for Ark and BitMINE?

Ark’s press release indicates that the firm will continue to monitor the crypto sector closely. “We expect to add more positions as we refine our understanding of the mining landscape,” Ark’s research director, Mark Cohen, said. In the short term, Ark may look to expand its stake in BitMINE or acquire additional mining firms that demonstrate strong cost efficiencies and strategic advantages.

For BitMINE, the capital infusion could accelerate its expansion plans. The company has already earmarked $20 million for next‑generation ASIC deployment, which could triple its hash‑rate in the next 12 months. If successful, this would enhance BitMINE’s ability to benefit from Bitcoin’s anticipated price appreciation and from an increasingly favorable regulatory environment.

8. Bottom Line

Ark Invest’s latest purchase of BitMINE shares marks a significant moment in the crypto world. It confirms that institutional capital is not only willing to invest in Bitcoin itself but also in the companies that help secure the network. The move underscores Ark’s confidence that Bitcoin’s infrastructure layer will grow in tandem with the asset’s price, providing a robust pipeline of returns for forward‑thinking investors. As Bitcoin continues to mature, miners like BitMINE—and the institutional funds that back them—may become pivotal players in the next chapter of digital finance.