The female stock goddess of ARK counter trend to build Coinbase, can repeat the “Tesla miracle”?

ARK Fund Allocates Nearly 180,000 Shares of Coinbase; Ark Q1 Holds About $20.9 Million in Grayscale Ether Trust. ARK Fund Founder Cathie Wood: Still Thinks Bitcoin Will Rise to $500,000.

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

On April 22nd, Square released a joint white paper with investment firm ARK that makes the case against the prevailing perception that bitcoin mining is a potential threat to the future of the planet’s environment: bitcoin is actually a key driver of the future of renewable energy, and that bitcoin mining contributes to the energy transition as much as renewable energy.

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

ARK Invest, a star investor in the traditional capital market, is slowly coming into the limelight in the crypto market with its increasingly visible moves in the crypto space.

01 Who is ARK?
Who is ARK and who is the “Goddess of Stocks”?

ARK was founded by Catherine Wood in 2014 and focuses on investing in “disruptive innovation” opportunities – genetic technology, robotics, artificial intelligence, energy storage and blockchain technology, etc. ARK believes in It believes in the investment logic of “allocate to small and mid-cap growth stocks and sell large-cap value stocks”.

Thanks to this investment logic, ARK has become one of the most popular investment firms in the U.S. capital market in the past 2020 years. The founder and fund manager, Catherine Wood, was once called the “woman behind Tesla” and was hailed as the “Goddess of Technology.

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

ARK is a hardcore fan of Tesla since its inception in 2014. When Tesla’s stock price plummeted in 2016, almost all analysts were down on Tesla, ARK bucked the trend and took a long position in Tesla and became the biggest “milk king” of Tesla.

And in the process of investing in Tesla, ARK basically does not refer to other analysts’ ratings, but only trusts its own judgment.

In 2016, Tesla’s stock price plunged 11% and ARK tripled its Tesla position while almost all analysts downgraded Tesla.

In 2017, when Tesla jumped 46%, 68% of analysts were still bearish, while ARK expanded its holdings at least 13 times

In February 2018, when Tesla’s share price was still hovering around $270, “Sister Wood” said that Tesla’s target price for the next five years was $4,000 per share.

In January 2020, “Sister Wood” said on CNBC that she believed that Tesla’s share price was expected to exceed $6,000 in the next five years.

Along with the heavy investment in new technology leading stocks such as Tesla and Tesla’s unbelievable performance, ARK also received unprecedented investment returns in 2020, it can be said that Tesla is one of the most successful investment targets for “Sister Wood”, which has helped her win the title of “Goddess of Technology Stocks The title of “Goddess of Technology Stocks” is a great credit.

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

At the same time, ARK’s largest product, ARKK, has almost averaged an annualized return of nearly 40% over the past five years, and all five funds have gained more than 100% in the past year, making every move of ARK funds a focus of the market, and the “copy job investment method” modeled on it is becoming increasingly popular.
Since 2017, ARK has been releasing “Big Ideas” reports at the beginning of the year to inspire investors to pay attention to technology breakthroughs and potential investment opportunities. In the “Big Ideas” report, ARK accurately identifies investment opportunities in new energy vehicles and bitcoin, which coincides with its investment logic of “allocate to small-cap growth stocks and sell value stocks.

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

In the ARK 2021 Big Ideas released on January 27th this year, “Sister Wood” devoted 2 out of 15 chapters to the fundamentals of Bitcoin and the in-depth analysis of institutional allocation of Bitcoin, ARK expects Bitcoin to become a part of the balance sheet of many institutions and public companies in the future. ARK expects bitcoin to become part of the balance sheets of many institutions and public companies in the future, and that a sea of stars will greet bitcoin.

In a way, the long-sighted “Sister Wood” is not only a hardcore Tesla supporter, but also a big fan of Bitcoin: “We believe Bitcoin is the first new asset class since the 16th century, and the first truly new asset class since the first stock was issued. “.

Crypto investments are moving a lot
Big GBTC allocation, counter-trend position in Coinbase

“We believe that as institutional interest in Bitcoin increases, it still has quite a bit of upside in its price. Assuming institutional investors increase their asset allocation to bitcoin by up to 5%, the price of bitcoin is expected to rise by another $500,000 from its current base”.

Not only have ARK and “Sister Wood” been consistent in their bullishness on typical new technologies like Tesla, they have also been strong proponents of “atypical” emerging assets like Bitcoin, and have been doing so for a long time with a great deal of success.

Back in 2015, when many people were still wondering what bitcoin was, ARKW, a division of ARK Invest, got in on the action and invested heavily in grayscale GBTC, which was priced at just $250 at the time.

Today, ARK remains a large holder of Grayscale Bitcoin Trust, with a cumulative 15,276,700 shares of GBTC (incomplete data, market value of about $690 million as of March 30, the latest available data), representing more than 5% of the fund’s total portfolio.

COIN (Coinbase’s U.S. ticker) did not perform as well in the secondary market after Coinbase’s U.S. IPO on April 14, but ARK allocated more than 1 million shares of Coinbase, worth about $352 million at that time, within two days of its IPO.

In the following half of the month, while Coinbase’s secondary market has continued to weaken, ARK has increased its holdings while reducing its holdings in other related concepts – ARK’s funds have increased their holdings in Coinbase while continuously selling off NYSE parent Intercontinental Exchange Inc. ARK’s funds sold shares of Intercontinental Exchange Inc. and sold shares of Square and Nvidia.

Judging from the five-year goals set by ARK, “Sister Wood” is still very optimistic about Coinbase’s prospects and the returns it can achieve.

With a heavy bet on Tesla, a miracle in the traditional capital markets, and now a counter-trend allocation to Coinbase after a large investment in GBTC, “Woody” has nothing but praise for the crypto asset space represented by Bitcoin – the $1 trillion milestone is nothing compared to the eventual market cap of digital assets.
It is worth looking forward to see if “Woody” can replicate the miracle of Tesla in 2020 and further validate her long-term vision as a “female stock goddess” in the crypto sector.

The new trend of traditional institutions actively entering the market

Of course, ARK’s frequent voices and active layout are only a microcosm of the investment layout of traditional financial institutions such as Wall Street in the crypto-asset field. The original crypto-investment institutions are making more efforts to plow deeper and more traditional world players are actively involved, which is already a visible trend.

The second half of this year’s institutional entry is even more intense. Just recently, Andreessen Horowitz (a16z), an early investor in well-known companies in the industry such as Coinbase and Ripple, announced plans to establish a $1 billion cryptocurrency venture capital fund, its third dedicated fund focused on cryptocurrency investments.

The launch of a16z’s first fund focused on the cryptocurrency sector in 2018, raising $300 million

in April 2020, a16z launched its second cryptocurrency fund, Crypto Fund II, at a size of $515 million

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

Meanwhile, Paradigm, founded by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Wong in 2018, has also recently raised a total of $1 billion from investors.

In addition to the investment funds that continue to set new fundraising levels running into the game in an intensive set-up position, there is also a noticeable loosening of movement from public companies, regulators and others.

As of April 28, 2021, U.S.-listed MicroStrategy held a total of 91,579 bitcoins, and its CEO Michael J. Saylor said he “will continue to allocate and hold more bitcoins as we seek to create more value for our shareholders “.

PayPal recently reported Q1 earnings with over $6 billion in revenue, partly from its cryptocurrency business. the CEO said that half of its future users want access to cryptocurrencies and that cryptocurrency users have their app open more frequently

In Germany, new legislation allowing institutional investment funds to invest in cryptocurrencies will allow about 4,000 existing institutional investment funds to be eligible to invest in cryptocurrency assets. The new legislation will take effect on July 1 and managers of institutional investment funds will be able to allocate 20% of their funds to crypto assets

As of the latest news on May 5, bitcoin custodian NYDIG said that bitcoin will be coming to hundreds of U.S. banks this year, allowing customers to allocate, hold and sell bitcoin, and that “what we’re doing is enabling Americans and companies, to simply allocate bitcoin directly through their existing banking relationships.”

The female stock goddess of ARK counter trend to build Coinbase, can repeat the "Tesla miracle"?

Under the recent prosperity of the hot secondary market and the rotation of wealth creation miracle, perhaps many people have slowly forgotten about GBTC, which almost dominated the main field in 2020, including COIN (Coinbase stock code), which was highly anticipated this year, and even the stagnant bitcoin market capitalization ratio and discussion degree followed by the dwindling.

However, the institutional force represented by ARK is stepping up its layout, behind the rapid growth of demand from professional investors who want access to crypto assets, and their big entry layout has accelerated the gradual emergence of crypto assets as one of the core assets for traditional investment institutions to allocate.

The impact on the crypto world could be fundamental: both the introduction of sky-high incremental capital and the ensuing regulatory improvements will be unprecedented in the past decade or so.


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-20 13:40
Next 2021-05-20 13:46

Related articles