Ark Investments founder and CEO Cathie Wood snapped up a huge chunk of Block Inc. (NYSE: SQ) shares while the stock price plunged nearly 15% dropping to $61.88 levels on Thursday, March 23, amid the short seller report by Hindenburg Research.
The firm purchased more than 338,000 shares of Block on Thursday. This purchase came through three different exchange-traded funds backed by Ark Investment Management LLC. ARK Innovation ETF, Ark Fintech Innovation ETF, and ARK Next Generation Internet ETF made the purchases yesterday.
Jack Dorsey’s Block Inc. facilitates crypto and digital payments and holds more than $220 million worth of Bitcoins in its reserves by the end of 2022. Previously, Square, the company has focused on new-age digital payments.
Ark Invest is among the top ten holders of Block Inc. shares. Cathie Wood is famous for making bold bets in this newly emerging space. Ark Invest has continued to purchase Coinbase (NASDAQ: COIN) stock even during the heavy correction over the last year.
In a statement later, Block Inc said that they will work with the U.S. Securities and Exchange Commission (SEC) and shall consider legal action against Hindenburg for this misleading report on its Cash App business. It said that the Hindenburg report on Cash App was “factually inaccurate and misleading”. It added that Hindenburg is trying to “deceive and confuse investors”.
The digital payments company further added that they are confident regarding their products, compliance program, reporting, and controls.