ARK Invest, a well-known investment company headquartered in New York, recently bought as many as 225,937 shares of Square Inc. The company made its move last Friday, July 16th, through the ARK Next Generation Internet ETF (ARKW) and ARK Innovation ETF (ARKK).
These are two of the company’s six ETFs, and both were topped up with Square’s stock. ARKW received 46,273 shares, while ARKK got 179,664.
Another thing worth noting is that the company also holds a stake in Square via ARKF, or ARK Fintech Innovation ETF. All three ETFs combined now hold over 7.2 million shares of Jack Dorsey’s payment firm, with the worth of the shares being around $1.7 billion, in total.
Big announcements for Square and Dorsey
While the mass engagement with Square’s stock is big news for ARK Invest, it is also important for Square itself, as well as for Dorsey. However, it is not the only major thing that happened recently. As some may know, just before the purchase, Dorsey made an announcement that revealed brand-new plans for a new business.
This new business will revolve around a platform that is currently being built. While details have yet to be revealed, it is known that the platform would facilitate Bitcoin-based permissionless, non-custodial, decentralized financial services. This would be a big thing for everyone involved, including Bitcoin itself, and it might give the coin a push to finally leave the tight belt in lower $30,000s in which its price has been stuck for months now.
Even before announcing the new business. Dorsey has had important news concerning Bitcoin, as he announced a new Bitcoin wallet earlier in July. According to him, the wallet will be a hardware wallet for Bitcoin, and it is being built by Dorsey’s payment firm right now.
In other words, Square is doing a lot to get tightly connected to Bitcoin very quickly. For the moment, however, Bitcoin’s price was not impacted by the news. In fact, its fluctuations, which went between $32k and $37k after the mid-May drop, appear to be growing smaller and smaller, as its price is stabilizing around $31k-$32k.
As it is well known by now, Bitcoin’s price doesn’t sit still for long, so this stabilization is likely to end at some point, although it is still unclear which direction the price might go when it does.
ARK Invest invested in Coinbase also
As Square continues to work on getting as tangled up with Bitcoin as possible, ARK Invest is moving in on Square itself, clearly believing that the company has great potential, which might also mean that ARK Invest believes in the future of Bitcoin, as well.
This makes sense, as the company also recently added 214,718 shares of another major US crypto business — Coinbase. Coinbase is the largest US exchange, and one of the largest ones in the world. It recently went public, and ARK Invest is definitely taking advantage of the opportunity to buy its stocks. The investment firm bought the shares through ARKK, meaning that ARKK now holds a total of around 4 million shares in the largest US exchange, with the estimated value of roughly $905 million.
Both companies that have attracted ARK Invest have a few things in common. For example, they offer crypto-related services, such as buying and selling BTC. But, more than that, they both invested in BTC, and are holding it on their balance sheets. Coinbase stated back in February that it holds $141 million in Bitcoin (4,482 BTC), while Square itself holds even more — $260 million, or around 8,207 BTC.