• Cathie Wood, an influential investor, recently purchased more than 600,000 Block Inc. shares after Hindenburg Research revealed a short position in the company.
• Wall Street appears to be siding with Wood as analysts view Hindenburg’s concerns as overblown.
• Wood also increased her stake in Coinbase late last week after the crypto exchange received a Wells notice from the U.S. Securities and Exchange Commission for potentially violating securities laws.
Cathie Wood Buys Block Shares
Cathie Wood recently mobilized three of her exchange-traded funds to purchase 338,000 shares of Block Inc (NYSE: SQ). This came shortly after Hindenburg Research revealed a short position in the crypto company – a sell-off that Cathie saw as an opportunity to expand her exposure to this stock. Wood criticized the short seller for „wildly misleading“ investors and shared a Twitter thread from an Ark associate Maximilian Friedrich defending Cash App’s spending limits as possibly preventing fraud during COVID times.
Wall Street Reacts
Wall Street appears to be siding with Cathie Wood as well, with analysts viewing Hindenburg’s concerns broadly as overblown. At writing, Block shares are down well over 30% versus their year-to-date high at writing. Meanwhile, Ark spent $16 million to purchase another 263,562 of Block shares that are now down well over 30%.
Wood Also Increases Stake in Coinbase
In addition to buying up more shares of Block Inc., Cathie Wood also increased her stake in Coinbase late last week after the crypto exchange confirmed that it received a Wells notice from the U.S. Securities and Exchange Commission for potentially violating securities laws. At writing, Coinbase stock is down 20% versus its high at writing time.
Ark Associate Defends Cash App
Maximilian Friedrich of Ark wrote on Twitter that all financial services companies encounter fraud during COVID times – Square and Cash App included – even though Hindenburg may have made it sound like it was isolated only to them. Friedrich further argued that Cash App’s spending limits might have prevented criminals from cashing out any more funds than they already did try too do so during these challenging times..
Conclusion
Ultimately, Cathie Wood saw an opportunity when she heard about Hindenberg’s short report on Block and invested heavily into both Block and Coinbase stocks despite their current dips – turning what seemed like bad news into potential gains for herself and her investment portfolios!