by Coinstrooper Crypto Articles
Quick Take
  • Cathie Wood’s ARK bought four more stocks this week.
  • In the same stretch, ARK warned that crypto bankruptcies and shutdowns are about to speed up.
  • ARK is buying companies that already make money, and that is exactly what its crypto warning is about.
  • SpaceX rose 118,709 shares, to roughly $498.6 million.

What Happened

His numbers are blunt. Hyperliquid (HYPE) lets traders bet on prices using borrowed money. Pump.fun helps people launch memecoins on Solana.

Market Context

SpaceX rose 118,709 shares, to roughly $498.6 million. Wood has kept buying it since the stock fell below its IPO price in June.

Falling prices explain much of it. Bitcoin (BTC) trades near $64,357, down about 46% in a year. Solana (SOL) is at $73.79, roughly 60% lower.

Why It Matters

“Revenue concentration is now at all-time highs across almost every layer apps, middleware, L1s etc… I expect this to intensify over the coming months: much more M&A, Chapter 11 filings, shutdowns, and acqui-hires. This is extremely bullish for the space,” Valente indicated.

Details

Cathie Wood’s ARK bought four more stocks this week. In the same stretch, ARK warned that crypto bankruptcies and shutdowns are about to speed up.

That sounds like a contradiction. It is not. ARK is buying companies that already make money, and that is exactly what its crypto warning is about.

Cathie Wood Buys 4 More Stocks

ARK’s July 27 filing lists four buys. Tesla went up 28,705 shares. SpaceX added 38,727 shares. NVIDIA gained 8,332 shares.

The fourth was BitMine’s Ethereum treasury play. It climbed 1.25%, or 97,383 shares. That was the biggest jump of the four.

ARK went back for two of them the next day. Tesla grew by another 23,943 shares. The stake is now worth about $860.6 million.

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There is a catch. Most July 27 buys landed near 1%. That usually means fresh cash flowing into the funds, not four separate stock picks.

Robinhood was the odd one out. ARK sold 32,021 shares while almost everything else went up.

ARK Warns Crypto Bankruptcies Will Rise

Lorenzo Valente runs digital assets research at ARK. He says crypto is in its deepest cleanout yet. Money has turned picky, and teams without real customers are closing.

Those two alone earn 67% of all revenue made by crypto apps. Add Ethena (ENA), which runs a dollar-style token, and the top three take nearly 80%.

Valente calls the cleanout healthy. At that level of concentration, though, small teams have almost no way to earn.

The link to the stock buys is simple. ARK is backing firms that already bring in cash. Its warning points at crypto projects that do not.

Some have already gone under. Everclear and ZERO Network both closed this year. Both were Decentralized Finance (DeFi) projects.

Why Crypto Projects Are Running Out of Room

ENA has dropped close to 87% over the same period. HYPE, at $54.63, is one of the few big tokens still up.

ARK did add one crypto fund. It bought 26,203 units of the 3iQ Solana Staking ETF on July 27. That came to about $158,000.

Set that against the millions it put into Tesla and SpaceX. The gap shows where Wood thinks the safer money is.

The post ARK Warns Crypto Bankruptcies and Shutdowns Will Rise, Cathie Wood’s Stock Buys Show Why appeared first on BeInCrypto.