Cathie Wood bought shares of cryptocurrency exchange Bullish ahead of the report. Was her bet justified?

Funds managed by Cathie Wood, who specializes in investing in breakthrough technologies, bought $8.3 million worth of shares of cryptocurrency exchange Bullish before the first publication of its quarterly report. The deal came as Bullish's stock price has fallen significantly since its debut on the New York Stock Exchange in August. The risk turned out to be justified - Bullish's earnings beat analysts' forecasts and its shares jumped in price.

ARK Invest, an investment holding company led by Cathie Wood, has built up a position in Bullish a day before the release of its first quarterly report after listing on the New York Stock Exchange. The company said it bought $8.3 million worth of Bullish shares through its exchange traded funds (ETFs).

According to Cointelegraph, as a result, the Bullish package under the control of ARK Invest grew to 2.52 million securities. At the time of publication of the announcement, on September 16, it was valued at $129 million (based on the closing price of $51.4). On September 17, the stake was already worth $136 million - the shares added almost 6% after the crypto exchange received a license to provide spot trading and custodial services to institutional clients in New York, the financial capital of the United States.

On September 18, Bullish quotes jumped by 7.5% on the pre-market - investors reacted to the fact that the first publicly disclosed financial report of the crypto exchange exceeded Wall Street forecasts. If the increase is maintained at the main trades, the value of ARK Invest's position in Bullish will exceed $147 mln.

Bullish after the close of trading on Sept. 17 in New York reported last quarter earnings of $108 million, or $0.93 per share - versus a loss of $1.03 per share a year earlier. Wall Street expected Bullish to barely come out in the plus side - with quarterly earnings of $0.03 per share, Coindesk reported, citing FactSet.

Bullish prices soared on the day of listing on August 13, reaching an intraday high of $118 per paper and closing at $68 - 84% above the IPO price. However, they have since lost much of the gains.

There is no unity among analysts: according to FactSet, seven treat Bullish shares neutrally, while four recommend buying them.

According to the CathiesArk website, Wood's biggest bet on the cryptocurrency sector is Coinbase - it is the second largest position after Tesla in the ARK funds' combined portfolio, now valued at $985 million. In addition, Wood's funds own $534 million worth of shares of Bitmine miner Immersion Technologies and $491 million worth of securities of steiblcoin issuer Circle - these are the 11th and 12th positions in her portfolio, respectively.

This article was AI-translated and verified by a human editor