Why Is Cathie Wood Buying More BitMine As Ethereum Plummets? Ark Invest Doubles Down as Tom Lee Defends Strategy

Key Takeaways

• Cathie Wood’s ARK Invest added more than $44 million in crypto-linked equities, including BitMine, Robinhood, and Circle.

• BitMine chairman Tom Lee defended the firm’s Ethereum treasury model despite billions of losses.

• Analysts say Ethereum’s price lacks momentum.

Cathie Wood’s ARK Invest increased its exposure to crypto-linked equities this week, buying shares of BitMine and other digital-asset firms, despite Ethereum’s sharp price drop and mounting sector-wide losses.

The purchases come as Tom Lee, BitMine’s Chairman, took to X to respond to mounting criticism over his firm losing $6.6 billion.

ARK Invest disclosed purchases of more than $44 million worth of crypto-related stocks on Monday, spread across several of its exchange-traded funds, including the ARK Innovation ETF and the ARK Blockchain & Fintech Innovation ETF.

Among the largest additions was BitMine Immersion Technologies, Tom Lee’s Ethereum-focused treasury company whose shares fell about 9% on the day, mirroring Ethereum’s price drop.

ARK bought roughly 274,000 shares, valuing the purchase at about $6.2 million based on closing prices.

Wood’s firm also added approximately $21 million worth of Robinhood Markets shares after the online brokerage’s stock slid nearly 10%.

Smaller purchases included the stablecoin issuer Circle, the crypto exchange Bullish, and Block and Coinbase, all of which fell alongside the broader market.

The renewed focus on BitMine comes as its chairman, Tom Lee, pushed back publicly against criticism of the company’s growing unrealized losses tied to Ethereum’s slide.

Taking to X, Lee fought back against criticism of the firm’s $6.6 billion loss as Ethereum prices dropped, claiming that the strategy was designed to withstand such losses.

Lee described the losses as a “feature” rather than a “bug,” implying it was an intentional part of the strategy.

Recent disclosures show BitMine holding more than 4.2 million Ethereum, with the value of those holdings falling to roughly $9.6 billion from nearly $14 billion late last year.

Lee said the company remained committed to its long-term strategy and reiterated that Ethereum was “the future of finance.”

At the time of reporting, Ethereum was trading at $2,257, down 25% over the last seven days.

Ethereum’s recent rebound appears technically fragile, according to CCN analyst Victor Olanrewaju, with momentum indicators continuing to signal bearish control.

While price action has stabilized in the short term, technical signals suggest further downside is possible.

“If ETH fails to hold this zone, the downside risk increases materially,” Olanrewaju said, adding that bulls would need to reclaim higher Fibonacci levels—particularly the 0.236 and 0.382 retracements—to shift the broader bias.

Until then, he said, Ethereum remains vulnerable to renewed selling pressure.

“Without a clear shift in momentum and capital inflows, the daily structure remains bearish.”

A decisive break above the $2,818 level, however, could reopen a move toward the $3,200 region, potentially altering the near-term outlook.

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