Cathie Wood and Ark Invest have invested in Bitcoin and blockchain technology through the decentralized financial ecosystem (DeFi).
In an interview with CNBC correspondent Kate Rooney during the 2022 Bitcoin Conference powered by Cash App, Ark Invest founder and CIO Cathie Duddy Wood said the company ditched PayPal Holdings Inc (NASDAQ: PYPL) and choose Block Inc (NYSE: SE). According to Wood, Block has more focus on Bitcoin through the lighting network.
Notably, the Bitcoin lightning network has grown tremendously in the past year fueled by El Salvador’s adoption.
“We tend to put our bets with who we believe will be the winners […] As we consolidated our portfolios during a risk-off period, we chose Block over PayPal,” she said in her closing remarks during the interview.
According to her, while retailers led in Bitcoin adoption, there is a new wave of interested institutional investors. Moreover, most institutional money is largely regulated while individual investors have the flexibility of investment.
The move to shy away from PayPal was advised by deep research that the company undertook before investment. Furthermore, Block, formerly Square Inc, recorded a profit of $2.03 billion last year with 44 million. On the other hand, PayPal’s Venmo reported a profit of $850 million in 2021 with 70 million users.
Thereby depicting Block’s Cash App’s future growth prospects, which are mostly tied to Bitcoin. Of note, Wood said Bitcoin is poised to hit $1M+ by 2030. And, she said that Ark Invest ventured into Bitcoin back when the asset traded for around $200 per coin.
With 70 percent of Bitcoin investors termed as long-term holders, then her prediction may materialize fueled by global adoption. Bitcoin and crypto adoption is expected to scale further, thanks to favorable regulations around the world.
Cathie Wood Bet on Bitcoin and Disruptive Technology
Cathie Wood and Ark Invest have invested in Bitcoin and blockchain technology through the decentralized financial ecosystem (DeFi). However, due to stringent regulations in the United States that have not favored the crypto market, the company has indirectly invested in Bitcoin. Nevertheless, Wood believes in holding Bitcoin over a period of time rather than timing buy entry.
Remember, Block is heavily invested in Bitcoin and has some of its liquidity in BTC. Otherwise, SQ shares have shown a significant correlation with Bitcoin price action. For instance, the Bitcoin price is down approximately 1.3 percent today according to data provided by TradingView.
SQ shares on the other hand are down approximately 1.42 percent during Monday’s premarket. Notably, the drop in SW shares has been sustained in the past year with approximately 52.54 percent lost.
Additionally, SQ shares have dropped approximately 23.71 percent YTD according to data provided by MarketWatch.
According to data provided by CoinGecko, Bitcoin is exchanging hands for around $41.5K. The asset is down approximately 30 percent and 10 percent in the past year and 14 days respectively.
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