Cathie Wood's Ark Invest buys $21 million in Block as stock drops 6%

Ark Invest bought additional shares in Block Inc. (XYZ) as the stock dipped 6% on Thursday.

The investment firm's latest disclosure shows that it added 267,676 shares of the bitcoin-focused fintech company across Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Blockchain & Fintech Innovation ETF (ARKF).

Block's stock fell 6.15% on Thursday to close at $79 — meaning that Ark's latest purchase of the firm's shares is valued at $21 million.

The company's investment strategy does not allow an individual holding to exceed 10% of a fund's portfolio to maintain diversification within its ETFs. According to its fund disclosure, Block is the 10th-largest holding within ARKW, with a total value of $60 million and a 3.51% weight.

The Jack Dorsey-led fintech reported solid second-quarter financial results on Wednesday. Its revenue came in at $6.62 billion, up 9% year-over-year, exceeding expectations, while adjusted earnings per share came in at $1.02, up 65% year-over-year. The firm's gross profit also grew 25% to $3.17 billion.

However, analysts at Mizuho cast concerns about the company's rising operating expenses, despite cutting 40% of its workforce in February. Mizuho estimates that Block's adjusted operating expenses will rise from $4.48 billion in the first half to $4.56 billion in H2 based on the company's guidance. 

SpaceX and Bullish

Meanwhile, Ark bought 20,318 shares of SpaceX across ARKK, ARK Autonomous Technology & Robotics ETF (ARKQ), ARKW, and ARK Space & Defense Innovation ETF (ARKX), worth about $2.3 million.

On Thursday, SpaceX shares rose 6.14% to close the day at $114.92, recovering from the 13.6% dip the previous day following the firm's Q2 financial results disclosure. Investors had raised concerns around the company's $18.4 billion in capital expenditure during the second quarter, a sixfold increase from the prior year. 

Through ARKW, Ark also sold 39,509 shares in Bullish (BLSH), worth $910,287. The crypto exchange fell 3.36% on the New York Stock Exchange on Thursday to close at $23.04.