Cathie Wood keeps the faith. With many investors fleeing Tesla and the crypto space, the CEO of ARK Invest remains optimistic about the long-term value of Tesla, Bitcoin and cryptocurrency exchange Coinbase – all hammered this year – and invests Consequently.
This week, ARK Investment Management funds bought nearly 75,000 shares of Tesla, nearly 300,000 of Coinbase, and over 315,000 of the embattled Grayscale Bitcoin Trust, according to Bloomberg.
Such investments are not for the faint-hearted. Tesla Stocks fell about 61% since their peak late last year. Coinbase Stocks fell to a historic low this week, down more than 80% for the year. And Bitcoin, the largest cryptocurrency, has lost over 60% of its value this year.
Admittedly, not everyone is convinced by Wood’s optimism. As the the wall street journal reported This week, even many investors in the flagship ARK Innovation ETF are losing confidence. Shares of this fund are down about 60% this year.
But even with this last FTX Collapsewhich has shaken investor confidence in all things crypto, “our belief in the underlying public blockchain infrastructure, which continues to operate as intended, has only increased,” said Frank Downing. , ARK’s research director, in a press release. video the firm posted on Twitter this month.
Saturday, Wood tweeted, “The Bitcoin blockchain has not moved during the crisis caused by opaque centralized actors. No wonder Sam Bankman-Fried doesn’t like Bitcoin: it’s transparent and decentralized. He couldn’t control it.
His business too shared data on Bitcoin trading showing that the supply of cryptocurrency held by long-term holders remained stable in November, indicating that these investors have “long-term focus and strong conviction” despite the turmoil. In a Bloomberg maintenance Last month, she reiterated her prediction that Bitcoin would hit $1 million by 2030 (it’s now below $17,000), and said it “came out of this smelling like a rose.”
As for Coinbase, it said the uncertainty surrounding FTX might actually help it.
“This is a regulated onshore business,” Wood noted in an interview. maintenance with Bloomberg last month. “I think Coinbase is going to come out here looking very, very strong. He just lost a very big competitor in FTX.
Coinbase CEO Brian Armstrong speaking at a crypto event a few weeks ago after the collapse, argued that Coinbase is a publicly listed company, and therefore much more transparent than FTX.
“You can read our financials,” Armstrong said. “They are audited by a third party, you don’t have to trust us. All client funds are segregated. We do not invest client funds without their explicit direction. »
This week Mazars, a French accounting firm, stopped working vouch for assets held in reserve by the Binance cryptocurrency exchange and other players in the space. Crypto firms have been unable to sign deals with the Big Four accounting firms as they seek to bolster their credibility amid the FTX fallout.
Wood also reiterated recently that she’s not worried about Tesla. This week, a major shareholder called for a new CEO to replace Elon Musk, who he says is too distracted by Twitter’s overhaul to do the job well.
According to latest searches from S&P Global Mobility, more automakers will cram into the EV space with lower-cost alternatives, especially with models costing less than $50,000, “where Tesla isn’t really competing yet.” . from Tesla The market share of electric vehicles will fall below 20% by 2025, up from 65% this year (through Q3), he predicted.
But Tesla “is grabbing a disproportionate share, and will continue to do so, of a market that we believe will represent 85% to 95% of all cars sold globally by 2027,” he said. she declared. told Bloomberg. “It’s on autopilot.”
Amid doubts about his investments and strategy, Wood recently tweeted that his fund companies “sacrifice short-term profitability for exponential, highly profitable long-term growth.”
This story was originally featured on Fortune.com
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