tl;dr
Cathie Wood’s Ark Invest increased its stake in Block Inc. by purchasing $19.2 million in shares across three ETFs, totaling 262,463 shares. This reflects confidence in Block’s expanding Bitcoin holdings, which now total 8,692 BTC valued at over $1 billion. Block integrates Bitcoin through subsidiar...
Cathie Wood’s Ark Invest has boosted its stake in Block Inc. by purchasing $19.2 million worth of shares across three of its ETFs, reflecting confidence in the fintech company’s expanding Bitcoin holdings. The ARK Innovation ETF (ARKK) acquired 152,980 shares, ARK Next Generation Internet ETF (ARKW) bought 69,526 shares, and ARK Fintech Innovation ETF (ARKF) purchased 39,957 shares, totaling 262,463 Block shares. Despite a recent dip in Block’s stock price, the company remains up 12% over the past month.
This increased investment coincides with Block’s deepening Bitcoin strategy, highlighted by its purchase of an additional 108 BTC valued at $12.58 million in Q2, bringing its total holdings to 8,692 BTC worth over $1 billion. Block ranks as the 13th largest public company by Bitcoin holdings and integrates BTC through various subsidiaries including Cash App and Square. Max Keiser emphasizes the importance of corporate Bitcoin accumulation, suggesting companies must follow MicroStrategy’s lead to thrive in the future.
Block’s Bitcoin integration is multifaceted: Cash App reported $10 billion in Bitcoin revenue in 2024 and incorporates Lightning Network payments, Square allows merchants to accept Bitcoin, and Bitkey offers self-custody hardware wallets. This diversified approach supports both transactional use and long-term investment in Bitcoin.
Financially, Block delivered strong Q2 results with $6.05 billion in revenue and a 14% increase in gross profit to $2.54 billion, surpassing Wall Street expectations. Net income soared to $538.46 million, aided by Cash App’s Bitcoin activities. These results led Block to raise its full-year gross profit forecast, fueled by steady payment processing and growth in lending products. Despite a $212.17 million revaluation loss on Bitcoin holdings due to price volatility, analysts view this as an accounting effect rather than a shift in the company’s strategy.
Block’s shares traded steadily in the $73–$75 range, closing at $74.39 with a 1.86% gain. Ark Invest’s increased exposure underscores its continued belief in Block’s fintech ecosystem and the long-term potential of Bitcoin, aligning with Cathie Wood’s focus on disruptive innovation and growth in digital payments and crypto adoption.