Cathie Wood’s Ark Investment Management on Tuesday raised its exposure in Silvergate Capital Corp (NYSE:SI) on the day shares of the cryptocurrency bank plummeted after reporting lower-than-expected quarterly results on higher expenses.
The St. Petersburg, Florida-based Ark Invest on Tuesday bought 79,870 shares — estimated to be worth $8.3 million — in Silvergate Capital.
Shares of the La Jolla, California-based company that runs the cryptocurrency trading subsidiary Silvergate Bank closed 25.2% lower at $103.3 a share on Tuesday. The stock is down 30.6% so far this year.
The popular investment firm owns shares in Silvergate Capital via the Ark Fintech Innovation ETF (NYSE:ARKF). No other Ark Invest ETF owns shares in the company.
ARKF held 376,985 shares — estimated to be worth $52 million — in Silvergate Capital, prior to Tuesday’s trade.
See Also: Cathie Wood Continues To Load Up In These 2 Crypto-Exposed Fintech Stocks On Wednesday
Silvergate Capital on Tuesday reported fourth quarter earnings of 66 cents a share, below analyst estimates of 72 cents a share. The company reported revenue of $49.26 million, below estimates of $53.47 million.
Silvergate Capital’s growth is linked to the cryptocurrency market, which itself is battling intense volatility and is down in the recent months.
Bitcoin (CRYPTO: BTC), the world's first and most-popular cryptocurrency, reached a new all-time high of over $68,000 on Nov. 10. The prices are down about 38% since.
Despite the recent headwinds, Wood is bullish on cryptocurrency and has been piling up shares in cryptocurrency-related stocks such as Coinbase Global Inc (NASDAQ:COIN), Block Inc (NYSE:SQ) and Robinhood Market Inc (NASDAQ:HOOD).
Here are a few other key Ark Invest trades on Tuesday:
- Sold 9,100 shares — estimated to be worth $4.64 million — in Netflix Inc. Shares of the video streaming platform closed 2.8% lower at $510.8 a share on Tuesday.
- Bought 92,283 shares — estimated to be worth $1.38 million — in Palantir Technologies Inc (NYSE:PLTR) on the dip. Shares of the company closed 6.5% lower at $14.97 a share on Tuesday.
