ARK Invest sells $31M in shares of Jack Dorsey’s Block

As a seasoned researcher with a keen eye for market trends and a hearty appetite for crypto, I find myself intrigued by ARK Invest’s recent decision to cash out shares of Jack Dorsey’s financial services firm Block. With my years of experience under my belt, I can’t help but see the timing as somewhat ironic – ARK offloading Block shares amid a surging crypto market, only to beef up its position in its own spot Bitcoin ETF.


Ark Invest, an investment manager favorable to cryptocurrencies, has sold shares from Jack Dorsey’s financial company, Block, during a rise in the cryptocurrency market.

On October 28th, ARK transferred a total of 418,556 shares of Block from two of its funds, as stated in a notice they released on October 29th.

As an analyst, I’ve just reviewed a trade where I divested 272,842 shares of Block from the ARK Innovation ETF, and simultaneously sold 145,714 shares of Block from the ARK Next Generation Internet ETF.

The sale netted $31 million at Block’s closing price of $74.5, according to data from TradingView.

Block shares rally 13% in October

Ark’s $31 million sale transpired as the price of Block stocks experienced substantial growth over the past month. In fact, since October 1st, the value of Block stocks has risen approximately 13%, surpassing $70 by October 10th, according to TradingView.

On October 17th, the price of Block peaked at a level not seen since April, which was $74.6. This brings it nearer to its all-time high for the year so far, set back in March at $85.7.

ARK Invest sells $31M in shares of Jack Dorsey’s Block

In October, Block’s stock price increase and ARK’s sale take place during a significant upward trend in the cryptocurrency markets. Bitcoin (BTC) alone has risen over 11% since October 1st. This bullish behavior aligns with the traditionally observed “Uptober” phenomenon in the crypto market, where a strong uptrend is typically seen in October.

As both Cash App and Square are under its umbrella, Block is a significant player in the financial services sector, particularly focusing on payments and promoting Bitcoin usage. In May, Jack Dorsey, one of its co-founders, announced that the company would allocate 10% of its monthly Bitcoin product earnings towards purchasing more Bitcoin.

ARK beefs up positions in its own spot Bitcoin ETF

Instead of reducing its investments in Block, ARK has instead boosted its ownership in its self-managed Bitcoin exchange-traded fund (ETF), known as the ARK 21Shares Bitcoin ETF (ARKB).

As an analyst, I’ve observed that, according to trading data from ARK, we (ARK) purchased approximately 6,698 shares of ARKB on October 28th. Given the closing price of $69.6, this transaction cost us roughly $466,000.

Compared to Block, whose price remains similar to early 2024 levels, the ARK 21Shares Bitcoin ETF has experienced a 39% growth in value this year, as per TradingView statistics.

ARK Invest sells $31M in shares of Jack Dorsey’s Block

As I pen this, I’m witnessing the surge of Bitcoin breaching the $71,000 mark on October 28, fueled by an impressive run towards BTC ETFs. Currently, Bitcoin is exchanging hands at $70,980, representing a minor dip of approximately 3.6% from its record high of $73,600, achieved on March 14, 2024.

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2024-10-29 12:17