The purchases came as Bullish stock declined by more than 15% over the past five trading days, despite a slight rebound on Tuesday. The move followed Bullish’s latest quarterly earnings report, which showed a net loss of $604.9 million, while adjusted revenue rose to $92.8 million from $62.4 million a year earlier.
Cathie Wood Bets on Bullish
Ark Invest, the investment management firm led by Cathie Wood, increased its exposure to crypto-focused company Bullish this week after purchasing approximately $4.4 million worth of the company’s shares across several of its exchange-traded funds. The move came despite a recent decline in Bullish stock, which struggled over the past month due to market volatility and concerns surrounding the company’s latest earnings report.
According to Ark’s daily trading disclosures, the firm purchased 52,308 Bullish shares on Monday and another 69,712 shares on Tuesday. The acquisitions were spread across Ark’s flagship Innovation ETF, its Next Generation Internet ETF, and the Blockchain and Fintech Innovation ETF. Based on the stock’s closing prices during those trading sessions, the total value of the purchases amounted to roughly $4.4 million.
Bullish shares have faced some selling pressure recently, and fell by more than 15% over the last five trading days. Although the stock managed to recover slightly with a 1.88% gain on Tuesday to close at $36.23, it is still down nearly 17% over the past month.
Bullish share price over the past 5 days (Source: Google Finance)
Ark Invest is known for actively rebalancing its ETF portfolios to make sure that no single stock exceeds 10% of a fund’s total holdings. As a result, the firm frequently adjusts positions based on price movements and changing market conditions. The latest purchases suggest that Ark views the recent pullback in Bullish shares as a potential buying opportunity despite the company’s short-term financial challenges.
Press release from Bullish
The investments followed Bullish’s recent first-quarter earnings release, which showed mixed financial results. The company reported a net loss of $604.9 million for the quarter, which was almost double the losses recorded during the same period last year. However, Bullish also posted strong revenue growth, with adjusted revenue increasing to $92.8 million from $62.4 million a year earlier.
