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Cathie Wood’s Ark Invest has doubled down on its bet on Block Inc., purchasing $19.2 million worth of the fintech firm’s shares across three of its exchange-traded funds (ETFs). The move comes as Block expands its corporate Bitcoin strategy, solidifying its position as one of the largest public holders of the cryptocurrency.
Ark Invest Expands Position Across Multiple Funds
According to Ark’s latest trading disclosure, the ARK Innovation ETF (ARKK) acquired 152,980 shares, the ARK Next Generation Internet ETF (ARKW) bought 69,526 shares, and the ARK Fintech Innovation ETF (ARKF) purchased 39,957 shares. In total, Ark added 262,463 shares of Block.
The purchases were made on Monday, with Block’s stock closing down 0.49% at $73.03 — its lowest finish since July 18. Despite a 4% decline over the past week, Block shares remain up 12% over the past month, reflecting renewed investor confidence in the company’s growth strategy.
Cathie Wood’s investment philosophy has long emphasized companies at the forefront of disruptive innovation. Block, with its dual focus on digital payments and Bitcoin integration, aligns closely with that vision.
Bitcoin Accumulation Strategy Gains Pace
The timing of Ark’s purchase coincides with Block’s ongoing expansion of its Bitcoin holdings. SEC filings reveal that the company, led by CEO Jack Dorsey, added another 108 BTC in the second quarter, worth roughly $12.58 million at current prices.
This acquisition brings Block’s total Bitcoin reserves to 8,692 BTC — valued at over $1 billion — placing it as the 13th largest public company in terms of Bitcoin holdings, according to Bitcoin Treasuries data.
Block’s approach to Bitcoin mirrors what industry analysts call the “Saylorization” trend, named after MicroStrategy’s Michael Saylor. This strategy involves accumulating Bitcoin as a treasury reserve asset while also integrating it into the company’s ecosystem.
Bitcoin advocate Max Keiser recently told BeInCrypto that he believes companies must adopt this strategy to remain competitive. “For corporations to survive, they must mimic the Strategy’s process — they must ‘Saylorize’ or die,” Keiser said, suggesting such moves could eventually push Bitcoin to $2.2 million per coin.
Integration Across Block’s Ecosystem
Block’s Bitcoin adoption spans its various business lines. Cash App, one of the company’s flagship products, generated $10 billion in Bitcoin revenue in 2024 and supports Lightning Network payments for faster, low-cost transactions.
Square, Block’s payment processing arm, enables U.S. merchants to accept Bitcoin directly, expanding cryptocurrency’s utility in everyday commerce. Additionally, Block’s Bitkey unit offers self-custody hardware wallets, targeting consumers who want direct control over their digital assets.
By embedding Bitcoin into multiple facets of its operations, Block not only holds cryptocurrency as an investment but also uses it as a tool to drive customer engagement and transaction volume.
Strong Earnings and Upgraded Forecast
Ark’s increased stake comes on the heels of Block’s strong second-quarter earnings report. The company posted $6.05 billion in total revenue, with gross profit climbing 14% year-over-year to $2.54 billion.
Net income attributable to common stockholders surged to $538.46 million, up from $195.27 million in the same quarter last year. These results exceeded Wall Street expectations and prompted Block to raise its full-year gross profit guidance from $9.96 billion to $10.17 billion.
Bloomberg attributed the earnings beat to steady payment processing volumes through Square’s merchant network and growth in Cash App’s lending products. Bitcoin-related activity through Cash App also played a significant role in boosting revenue.
Accounting Impact of Bitcoin’s Volatility
Despite the earnings strength, Block reported a $212.17 million revaluation loss on its Bitcoin holdings, reflecting the decline in Bitcoin’s fair market value during the quarter. Analysts note that such losses are an accounting formality under current reporting standards and do not necessarily indicate a change in the company’s long-term Bitcoin strategy.
For Ark Invest, the short-term volatility in cryptocurrency prices appears to be less important than the broader growth narrative. Wood has consistently argued that Bitcoin will become an increasingly integral part of the financial system, and companies like Block are positioned to benefit disproportionately.
Market Outlook
On Tuesday, Block’s shares traded between $73 and $75, closing at $74.39, up 1.86% from the previous day. Ark’s purchase underscores its conviction in both Block’s fintech platform and Bitcoin’s long-term potential.
As more corporations consider Bitcoin as part of their treasury strategy, Block’s early and aggressive integration could serve as a competitive advantage. Coupled with strong revenue growth from its core fintech operations, the company’s dual focus on innovation and digital asset adoption continues to attract long-term investors.
If Bitcoin prices recover and corporate adoption accelerates, analysts believe Block could see both its share price and Bitcoin holdings appreciate significantly, further validating Ark Invest’s bet.
