Katie Wood is keeping the faith. While many investors are fleeing Tesla and the crypto space, the CEO of ARK Invest remains bullish on the long-term value of Tesla, Bitcoin and cryptocurrency exchange Coinbase, all of which have been launched this year, and is investing accordingly. perform.
This week, ARK Investment Management funds bought about 75,000 shares of Tesla, about 300,000 shares of Coinbase and more than 315,000 of the embattled Grayscale Bitcoin Trust, according to Bloomberg.
Such investments are not for the faint of heart. Tesla shares are down about 61% from their peak late last year. Coinbase shares fell to an all-time low this week, down more than 80% for the year. And Bitcoin, the largest cryptocurrency, has lost more than 60% of its value this year.
Of course, not everyone is sold on Wood’s optimism. How? Wall Street Journal Even in the flagship ARK Innovation ETF, it was reported this week that many investors are losing faith. The shares of that fund have decreased by about 60% this year.
But even with the recent collapse of FTX, which shook investors’ faith in all things crypto, “our confidence in the underlying public blockchain infrastructure continuing to function as designed has only grown,” said Frank Downing, ARK Research the director. a video the company tweeted this month.
Wood on Saturday on Twitter, “Bitcoin’s blockchain has not been spared during the crisis caused by opaque centralized players. No wonder Sam Bankman-Fried didn’t like Bitcoin. it is transparent and decentralized. He couldn’t help it.’
His firm also shared bitcoin trading data showing that long-term holders’ supply of the cryptocurrency remained flat during November, indicating that those investors have a “long-term focus and high conviction” despite the turmoil. In an interview with Bloomberg last month, he repeated his prediction that Bitcoin would reach $1 million by 2030 (it’s now below $17,000) and said it was “coming out smelling like a rose.”
As for Coinbase, he said the uncertainty surrounding FTX may actually help it.
“This is an onshore, regulated company,” Wood said in an interview with Bloomberg last month. “I think Coinbase is going to come out here looking very, very strong. It just lost to 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 traded company and therefore much more transparent than FTX.
“You can read our financial statements,” Armstrong said. “They are audited by a third party, we don’t have to trust them. All customer funds are segregated. We do not invest any client funds without their clear direction.”
This week, French accounting firm Mazars went out of business guaranteeing the reserve assets of cryptocurrency exchange Binance and other players in the space. Crypto firms have been unable to close deals with the Big Four accounting firms as they seek to boost their credibility amid the FTX fallout.
Wood also recently reiterated that he’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 transforming Twitter to do the job right.
According to recent research from S&P Global Mobility, more automakers will be flocking to the EV space with lower-priced alternatives, especially for models under $50,000, “where Tesla still really competes.” Tesla’s EV market share will drop to 20% by 2025 from 65% this year (through the third quarter), he predicts.
But Tesla is “taking a disproportionate share and will continue to do so in a market that we believe will account for 85-95% of all cars sold globally by 2027,” he told Bloomberg. “It’s on autopilot.”
Amid doubts about his investments and strategy, Wood recently tweeted that his fund’s companies “sacrifice short-term profitability for exponential and highly profitable long-term growth.”
This story originally appeared on Fortune.com
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