Overview
- Ark Invest purchased approximately $37.4 million in shares of Block on Monday.
- The investment was distributed among the ARKK, ARKW, and ARKF funds.
- Additionally, Ark acquired about $3.4 million in shares of Circle.
Cathie Wood's Ark Invest has made a notable investment, acquiring $37.4 million worth of shares in Block Inc., the payments company co-founded by Jack Dorsey, on Monday. This acquisition was spread across three of its actively managed exchange-traded funds.
The firm secured 456,059 shares of Block, identified by the ticker XYZ, as per a trading update released by Ark Invest.
Myriad: What's the next move for Bitcoin? Make your prediction here.Of the total shares purchased, 191,732 shares valued at approximately $15.7 million were allocated to the flagship ARK Innovation ETF. The ARK Next Generation Internet ETF received 88,065 shares worth about $7.2 million, while the ARK Fintech Innovation ETF took on 176,262 shares valued at approximately $14.5 million.
On the day of the purchase, Block shares closed down 3.23% at a price of $80.20.
Jack Dorsey, a prominent advocate for Bitcoin, co-founded Block in 2009, originally known as Square Inc. The company runs the Square platform for merchants, the Cash App for Bitcoin and financial transactions, and is also involved in Bitcoin mining hardware development.
This acquisition followed Block's second-quarter financial report, which revealed a gross profit of $3.17 billion, marking a 25% increase year-over-year. The company has also raised its gross profit forecast for 2026 to $12.51 billion, indicating a projected annual growth rate of 21%, as detailed in Block's shareholder letter.
Block reported operating income of $447 million and adjusted operating income of $864 million for the quarter. The company attributed its success to advancements in artificial intelligence, which facilitated most of its production code changes in June.
These results followed a significant restructuring in February that saw Block reduce its workforce by over 40%, cutting down from more than 10,000 employees to fewer than 6,000.
In addition to its Block investment, Ark also purchased 35,192 shares of the USDC stablecoin issuer Circle Internet Group through its fintech fund, representing an investment of about $3.36 million, as Circle's shares closed at $95.55, up 9.65%. On the same day, Ark sold shares in Palantir, Shopify, Roblox, AMD, and Tempus AI, but it did not clarify whether these sales funded the purchases of Block or Circle.