Cathie Wood's ARK Invest has made a significant purchase of Block (SQ) shares, acquiring approximately $19.2 million worth of stock. This move comes after a period of substantial selling by ARK Invest and amidst a recent uptick in Block's stock price, despite a year-to-date decline.
ARK Invest's Strategic Shift
ARK Invest, known for its focus on disruptive innovation, has re-entered the market for Jack Dorsey's financial services firm, Block. The investment firm acquired 262,463 shares of Block on Monday, with the transaction valued at $19.2 million based on the stock's closing price of $73. This acquisition marks ARK's first purchase of Block shares in months, signaling a potential change in its investment strategy after a prolonged period of divestment.
Key Takeaways
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ARK Invest purchased $19.2 million in Block (SQ) shares.
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This is ARK's first Block purchase in months, following significant selling.
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Block's stock has seen an 8% increase in the past 30 days.
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Despite recent gains, Block shares are down 21% from January highs.
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ARK Invest holds a total of $193 million in Block shares across its funds.
Block's Financial Performance and Market Position
Block recently reported a strong second quarter, with a profit of $2.54 billion and a 14% year-over-year increase in gross profit. The company's Cash App service was a primary driver of this growth, generating $1.5 billion in gross profit for the quarter and reaching eight million Bitcoin accounts. However, despite these positive financial results, Block's stock price experienced a nearly 7% drop following the report's release. While the stock has shown recovery since May, it remains down 21% from its January peak.
ARK's Holdings and Future Outlook
The recent purchase was distributed across three of ARK Invest's key funds: the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). ARKK, the largest of the ARK funds, sold 152,980 Block shares on the same day it made its purchase, now holding approximately 1.34 million shares worth $97.7 million. Collectively, ARK Invest now holds around 2.6 million Block shares, valued at $193 million. Block is reportedly planning to introduce a suite of Bitcoin banking tools for small and medium-sized enterprises, with initial integrations expected in late 2025.
Sources
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Cathie Wood’s ARK Bags $19M In Jack Dorsey's Block Shares, Cointelegraph.
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