Cathie Wood's ARK Holdings is bingeing on Bitcoin, Coinbase, and Tesla

Cathie Wood continues to believe. The ARK Invest CEO is making investments in line with his continued optimism about the long-term worth of Tesla, Bitcoin, and crypto currency Coinbase—all of which have been severely damaged this year—while many buyers are running away from Tesla and the crypto ecosystem.

According to Bloomberg, in the week that saw the purchase of about 75,000 Tesla units, nearly 300,000 Coinbase shareholders, and much more than 315,000 shares of the troubled Grayscale Bitcoin Trust by ARK Investment Management funds.

Such bets should not be made by timid people. Since their high late last year, Tesla stock has dropped by nearly 61%. This week, Coinbase stock reached a record low and is now lost and over 80% for the year. The biggest cryptocurrency, Bitcoin, has also lost over 60% of its worth this year.

Undoubtedly, not everybody shares Wood's optimism. Indeed many investors in the flagship ARK Innovative ETF are starting to lose faith, as the Wall Street Journal revealed this week. This year, assets of that fund have decreased by roughly 60%.

Frank Downing, an ARK director of research, stated in a video the company shared on Twitter this quarter that despite the latest FTX collapse, which caused shareholders' belief in all items cryptocurrency to be shaken, “our conviction in the underlying public blockchain infrastructure, which continues to operate as designed, has only increased.”

The Bitcoin blockchain didn't miss a beat as during the crisis brought on by mysterious controlled players, Wood tweeted on Saturday. Bitcoin is open and decentralized, thus it makes sense that Sam Bankman-Fried didn't like it. He was powerless to stop it.

Her company also provided information on Bitcoin trading, revealing that long-term holders' quantity of the cryptocurrency stayed constant in November, suggesting that those buyers have a stable investment “long-term focus and high conviction” despite the agitation. She reaffirmed her forecast that Bitcoin will reach $1 million by 2030 in an appearance with Bloomberg last month (it is currently around $17,000), and claimed that it is “coming out of this smelling like a rose.”

Regarding Coinbase, she claimed that the ambiguity around FTX would really be advantageous.

“This is an onshore, regulated company,” Wood made this point in a recent interview with Bloomberg. “I think that Coinbase is going to come out here looking very, very strong. It just lost a very big competitor in FTX.”

Addressing a cryptocurrency conference a few weeks earlier, well after the crash, Coinbase CEO Brian Armstrong stated that because Coinbase is a publicly traded corporation, it is much more accessible than FTX.

In the week that ended, the French accounting department Mazars stopped vouching for funds kept in deposit by Binance, a cryptocurrency exchange, as well as other market participants. In an effort to increase their reputation in the wake of the FTX scandal, cryptocurrency companies have struggled to reach agreements with the Big Four accountants and auditors.

Wood previously reaffirmed that she doesn't worry about Tesla. In the week, a significant stakeholder demanded that Elon Musk be replaced as CEO, claiming that Musk is too preoccupied with overhauling Twitter to perform his duties effectively.

Tesla's EV customer base will drop below 20% by 2025, from 65% in the year and (through the third quarter), per the new findings from S&P Global Mobility. More automakers will rush into the EV room to cheaper options, particularly with designs likely to cost just under $50,000, “where Tesla does not yet truly compete,” it said.

“grabbing a disproportionate share, and will continue to do so, of a market that we think by 2027 will account for 85% to 95% of all cars sold in the world,” The ARK CEO said in an interview.

Wood recently stated that the businesses in her portfolio are notwithstanding the skepticism around her acquisitions and strategies.

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