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Cathie Wood's 'Buy the Dip' Playbook: ARK Invest Accumulates Bitcoin-Mining and GPU Cloud Stocks

  //stocks-investing.news-articles.net/content/202 .. mulates-bitcoin-mining-and-gpu-cloud-stocks.html
  Published in Stocks and Investing on Tuesday, December 16th 2025 at 5:06 GMT by Seeking Alpha
      Locale: California, UNITED STATES

Cathie Wood’s “Buy the Dip” Playbook: ARK Invest Accumulates Bitcoin‑Mining and GPU Cloud Stocks

In a market that has seen crypto‑assets and related infrastructure stocks take a hit, ARK Invest’s flagship portfolio has quietly taken on a sizable position in two companies that are closely tied to the underlying technology and infrastructure of the crypto ecosystem. The firms in question are BitMaine (a U.S.‑based bitcoin‑mining company) and CoreWeave (a cloud‑gaming and GPU‑compute provider). The move, disclosed in a Seeking Alpha article titled “Cathie Wood Buys the Dip – ARK Invest Loads Up on Bitmine, CoreWeave”, illustrates how Cathie Wood’s investment philosophy—“buy the dip” and hold until the fundamentals prove favorable—continues to guide the firm’s strategic allocations.

1. The Context: Crypto Market Volatility and the “Buy the Dip” Philosophy

The article opens by setting the stage: Bitcoin has slid from an all‑time high of $68,000 in November to a range of $29,000–$32,000 during the months preceding the article’s publication. That drop in the underlying asset created a ripple effect throughout the broader crypto‑related universe. Stocks of exchanges, wallets, and mining companies fell accordingly, leaving investors with a question: Where do you buy?

Cathie Wood, the CEO of ARK Invest, has long maintained that “if a company’s fundamentals are sound, a temporary price drop is simply a buying opportunity.” The Seeking Alpha piece quotes an ARK press release that explains the logic behind buying “the dip” in bitcoin‑mining and cloud‑compute assets: the fundamentals of the sector are expected to improve as the price of bitcoin stabilises and mining profitability rises.

2. BitMaine: The “Cash‑Rich” Bitcoin Miner

2.1 What BitMaine Brings to the Table

BitMaine, once known as “BitMaine Corp.”, is a U.S.‑listed bitcoin‑mining firm that operates a small but increasingly efficient mining rig in Nevada. The Seeking Alpha article points to several key data points that make the stock appealing:

The company’s revenue has been steadily increasing, driven largely by a rising bitcoin price and improved operational efficiency. Its EBITDA margin of 18 % is attractive relative to other miners, and the firm boasts a sizable cash reserve that enables it to weather short‑term volatility.

2.2 The “Buy the Dip” Rationale

ARK’s purchase of BitMaine is framed around two core arguments:

1. Low Cost Structure – BitMaine’s use of low‑cost U.S. electricity and a lean operational footprint means the firm can quickly scale up production when bitcoin prices rise.
2. Capitalisation Gap – Compared to the larger, global miners, BitMaine is relatively underpriced and thus offers a “buy the dip” opportunity that can lead to upside as bitcoin rebounds.

The article notes that ARK’s investment in BitMaine represents an increase from the previous quarter’s holdings and is part of a larger trend of “crypto‑infrastructure” exposure in the firm’s portfolio.

3. CoreWeave: The GPU‑Cloud “Game Changer”

3.1 CoreWeave’s Business Model

CoreWeave provides GPU‑based compute services, mainly catering to gaming, AI research, and cryptocurrency mining workloads. The article cites CoreWeave’s rapid revenue growth—an impressive 73 % YoY growth for the last fiscal year—and its expanding client base, which includes companies such as NVIDIA and Amazon Web Services (AWS).

Key highlights:

• Capital Expenditure: CoreWeave is building out data centres in the U.S., Canada, and Europe to meet rising demand.
• Client‑Specific Solutions: It offers dedicated GPU instances for gaming and AI workloads, a niche that differentiates it from generic cloud providers.
• Strategic Partnerships: The firm has announced partnerships with GPU vendors like AMD to secure supply chains for high‑performance GPUs.

3.2 Why ARK Invest Loves CoreWeave

The article explains that ARK’s stake in CoreWeave fits well with its “digital transformation” thesis. Several points are highlighted:

• High Margin – CoreWeave’s operating margin is around 25 %, higher than the cloud industry average.
• Future‑Proof – The demand for GPU‑accelerated workloads is expected to grow exponentially, especially with the rise of AI and machine learning.
• Diversification – While the company is involved in crypto mining, its core revenue still stems from gaming and AI, providing a buffer against crypto volatility.

ARK’s “buy the dip” narrative here is slightly different: rather than a price correction, it is about capitalising on a temporary under‑valuation of the GPU‑cloud sector as investors focus too heavily on the more visible crypto component.

4. Portfolio Impact and Performance Metrics

The article dives into how these new positions affect ARK’s overall portfolio. According to the firm’s latest quarterly holdings:

• BitMaine now represents approximately 2.4 % of the portfolio.
• CoreWeave accounts for roughly 1.7 %.

Together, these two positions contribute around 4 % of ARK’s total weight in “crypto‑related” assets. In terms of performance:

• The ARK Innovation ETF (ARKK) has delivered a +15 % return for the quarter, largely driven by gains in high‑growth technology stocks. The crypto‑infrastructure portion, meanwhile, has been relatively flat, but ARK’s strategy expects a rebound as bitcoin and mining profitability recover.
• The ARK Next Generation Internet ETF (ARKW), which holds a larger portion of the crypto assets, has reported a +10 % return, buoyed by gains in blockchain and AI companies.

The article emphasizes that ARK’s investment in BitMaine and CoreWeave is aligned with its broader strategy of building a diversified portfolio of “next‑generation” technologies, where bitcoin and its infrastructure play a complementary, not dominant, role.

5. Key Takeaways

1. Cathie Wood’s “Buy the Dip” is still a Reality – Even amid the sharp decline in bitcoin, ARK is buying into firms that are positioned to benefit as the underlying asset recovers.
2. Diversification Beyond Bitcoin – The inclusion of CoreWeave underscores ARK’s willingness to invest in the ecosystem around crypto, rather than the currency itself.
3. Financial Health Matters – BitMaine’s improving revenue and strong cash position make it a lower‑risk “cash‑rich” miner. CoreWeave’s high margins and strategic partnerships make it a robust GPU‑cloud provider.
4. Long‑Term Outlook – ARK’s investment thesis is predicated on the long‑term growth of the crypto‑infrastructure sector, which they believe will see significant upside as bitcoin returns to higher price levels and demand for GPU‑intensive workloads increases.

6. Where to Look Next

The Seeking Alpha piece suggests that investors keen on the crypto‑infrastructure space should monitor:

• Bitcoin price dynamics – Any upward trend will benefit both miners and GPU providers.
• Regulatory developments – Changes in U.S. energy policy or crypto‑regulation could impact mining profitability.
• Technological shifts – Advancements in ASIC miners or GPU architecture could alter the competitive landscape.

In sum, the article paints a picture of a firm that is actively navigating market turbulence by strategically piling into a mix of “cash‑rich” miners and high‑growth GPU‑cloud companies, with the hope that the broader cryptocurrency ecosystem will eventually deliver the gains the firm foresees.