According to Woofun AI, Ark Invest, led by Cathie Wood, adopted a significant reverse operation strategy when US technology stocks faced a sharp sell-off wave on Thursday: while drastically increasing their holdings in Coinbase (COIN.US), they cut their holdings in Bullish (BLSH.US) and Bitmine (BMNR.US).
This move occurred against the backdrop of extreme pessimism in market sentiment and rapid decline in dividends after the election, highlighting the agency's differentiated judgment on specific crypto assets and technology leaders. Ark Invest's series of deals not only reflects its continued optimism about Coinbase's fundamentals, but also reveals its tactical intention to optimize risk exposure by adjusting positions in the midst of market panic, especially when individual stocks such as Bullish and Bitmine face significant downward pressure, choosing to leave the market and concentrate capital on more definite targets.
Looking at specific position changes, Ark Invest bought 17,806 Coinbase shares through its Ark Innovation ETF on Thursday, with a transaction amount of $2.44 million.
At the same time, the agency carried out a large-scale holdings reduction operation, selling 109,522 Bullish shares worth 2.27 million US dollars and 119,841 Bitmine shares worth 2.28 million US dollars. On the same day, it also reduced its holdings of several semiconductors and computing power targets, of which the largest single transaction cashed out about US$134 million. Based on all disclosed transactions on the same day, ARK bought about US$163 million, sold about US$196 million, and net sales of about US$33 million — the overall exposure actually shrunk, which is inconsistent with the interpretation of “full bottoming out.”
Woofun AI collated data and showed that these operations took place in an extremely volatile market environment. On the same day, the Nasdaq Composite Index (Nasdaq Composite), which is dominated by technology stocks, closed down 5.52%, the biggest one-day decline since April 2025. This data was confirmed by a CNN report. The S&P 500 Index (S&P 500) fell 4.36%, and the Dow Jones Industrial Average (Dow Jones Industrial Average) fell 3.44%. In terms of individual stocks, Coinbase's stock price fell 9.69% to close at $136.82; Bullish's stock price fell 10.46%; and Bitmine's stock price plummeted 12.56%.
Despite this huge market pressure, Ark Invest chose to enter the market to absorb chips when Coinbase's stock price fell sharply, showing its firm optimism about the long-term value of the crypto exchange, while adopting a risk-averse reduction strategy for its rivals or related concept stocks.
The deeper market turmoil stemmed from a sharp correction in the artificial intelligence sector, which became the most damaged sector in this sell-off wave. The victory of the Democrats in the midterm elections raised concerns in the market that AI development might slow down, leading to a sharp drop in related stocks. Nvidia (NVDA.US) shares fell 9.26%, erasing all of their year-long gains; AMD (AMD.US) shares plummeted 17.26%, although their year-to-date increase remained at 81%; and SpaceX (SPCX.US) shares fell 9%.
However, Ark Invest did not follow the trend and instead made large-scale contrarian purchases when the stock prices of these tech giants plummeted. According to the transaction disclosure, Ark purchased 252,592 Nvidia shares worth $45.9 million and 48,984 AMD shares worth $19.8 million.
Additionally, the agency increased its holdings of 393,774 SpaceX shares, trading up to $48.7 million. This series of operations shows that Ark Invest believes that the current market decline is temporary and that fears caused by political factors have been overmagnified, so it chose to increase its allocation in the field of AI and space technology when valuations are more attractive, in order to obtain higher returns in the future.
This “others fear me greed” investment strategy is particularly prominent in the current market environment, and has further intensified market discussions on Ark Invest's investment philosophy.
The effects of this sharp decline in US stocks spread rapidly to the Asian market. On Friday morning, South Korea's KOSPI index plummeted by nearly 9%, triggering a brief suspension of trading before falling back to 3.6% around noon. Japan's Nikkei 225 index fell 5.3% in early trading. The cryptocurrency market was also not spared, with BTC falling 5.8% over the past 24 hours to $75,908 as of 11:20 p.m. EST on Thursday, after falling to a low of around $75,350 in the intraday period. ETH fell 8.2% to $2,234.
This series of linked declines in global markets reflects widespread pessimism in investor sentiment and the fragility of risky assets. Although ARK's contrarian operation shows its unique investment perspective, there are still doubts about whether its positions can withstand further fluctuations in the context of systemic risk release in the global market. Following the sharp market shock, global asset prices are once again facing a severe test. ARK's large-scale position adjustment may become an important window for observing institutional capital flows and signals of the bottom of the market.