TL;DR
- Ark Invest bought 267,676 Block shares worth roughly $21 million after the fintech’s stock fell 6.15% to $79 on Thursday.
- Block reported $6.62 billion in quarterly revenue, $1.02 adjusted earnings per share and $3.17 billion in gross profit, but rising expenses concerned analysts.
- Ark also bought $2.3 million of SpaceX shares while selling 39,509 Bullish shares worth $910,287, showing selective positioning across its technology and crypto-related holdings during Thursday trading.
Cathie Wood’s Ark Invest increased its exposure to Block Inc. just as the bitcoin-focused fintech endured a sharp market setback. The investment firm bought 267,676 Block shares across three of its exchange-traded funds after the stock fell 6.15% on Thursday to close at $79. The timing makes the purchase particularly striking: Ark added roughly $21 million in exposure while investors were digesting fresh concerns about Block’s cost structure. The move came despite solid second-quarter numbers, creating an unusual split between improving financial performance and immediate pressure on the company’s share price.
Ark leans into Block despite rising expense concerns
The purchases were spread across the Ark Innovation ETF, Ark Next Generation Internet ETF and Ark Blockchain & Fintech Innovation ETF. Ark’s portfolio rules prevent any single holding from exceeding 10% of a fund, a constraint intended to preserve diversification. Block nevertheless remains a meaningful position inside Ark’s investment framework, ranking as the 10th-largest holding in ARKW with a value of about $60 million and a 3.51% weighting. The latest addition therefore looks less like a new conviction bet and more like Ark reinforcing an existing position during a pronounced one-day decline.
Block had reported second-quarter revenue of $6.62 billion, representing 9% year-over-year growth and beating expectations. Adjusted earnings per share reached $1.02, up 65% from a year earlier, while gross profit advanced 25% to $3.17 billion. Yet the numbers did not erase concerns about spending. Mizuho analysts focused on rising operating expenses even after Block cut 40% of its workforce in February. The firm estimates adjusted operating expenses will climb from $4.48 billion in the first half of the year to $4.56 billion during the second half based on company guidance. That contrast helps explain why the selloff looks less like a rejection of growth and more like skepticism about future operating leverage.
Ark’s Thursday activity extended beyond Block. The firm also purchased 20,318 SpaceX shares across four ETFs, a position valued at about $2.3 million. SpaceX rose 6.14% to $114.92 after falling 13.6% the previous day as investors reacted to second-quarter capital expenditure of $18.4 billion, six times the prior-year level. At the same time, Ark trimmed another crypto-related position rather than simply buying across the board. Through ARKW, it sold 39,509 shares of Bullish worth $910,287 as the crypto exchange dropped 3.36% to close at $23.04.
