ARK Invest founder Cathie Wood told Bloomberg that she is still convinced Bitcoin will hit $1,000,000 by 2030. This, despite the recent pain and liquidations from many-a crypto fund — Three arrows capital, FTX, and most recently (November 29th) BlockFi. Wood isn’t just talking — she’s putting her money (and her investor’s money) where her mouth is.
Wood has been buying the dip in crypto trading platform Coinbase — increasing ARKK’s share count in the crypto exchange by roughly 25% between November 7th and November 28th (to the tune of more than $50 million). Additionally, Wood has picked up shares of Grayscale Bitcoin Trust and Silvergate Capital.
While it’s unclear whether Wood has bought the dip in the cryptocurrency itself, we do know that Wood spent $100,000 on Bitcoin when it was trading at roughly $250 per coin, and never sold. It’s estimated that Wood holds roughly 400 coins, with an overall value of roughly $6.5 million at the time of writing.
And with the belief that the cryptocurrency is headed for a value of $1M, why Wood she sell it? (Sorry, we had to.) The ARK Founder told Bloomberg that events like the FTX bankruptcy are simply bumps in the road, and that Bitcoin would quote, “come out of this smelling like roses.” Still, it isn’t going to be a straight shot.
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Wood said that the recent crypto bankruptcies and even the prevalence of scams in the industry will likely give some funds and institutions pause as they consider whether or not to invest capital in the controversial digital payment system. However, according to Wood, this is all part of the ride.
Some crypto enthusiasts believe that the recent troubling events in the cryptoverse are actually proving — not disproving — the case for Bitcoin. Bitcoin is a decentralized, peer-to-peer system with no central bank, no one “at the head.” The founder, Satoshi Nakamoto, has no control over the system, and has been MIA since April of 2011.
In other words, the problem with FTX was never cryptocurrency itself, or bitcoin, or decentralization — it was the fact that an authority existed at the top. Someone who could make decisions, take on leverage, manage (and potentially mismanage) client funds. That ability doesn’t exist for Bitcoin, but it does for companies with Bitcoin exposure.
Or, as Wood put it in her most recent Bloomberg interview:
“Sometimes you need to battle test […] to go through a crisis […] to see the survivors.”
Spoken less like a fund manager and more like a Spartan general. Of course, with shares of Cathie Wood’s flagship fund ARKK down -64% YTD, and the value of BTC itself down roughly the same amount (-65% YTD), it probably feels a bit like that — a war of attrition, where the only viable option is to stay the course, and stick to your guns.
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