Cathie Wood Buys $11M of a Sinking Crypto Stock Again — Conviction or Contrarian Bet?

Cathie Wood is once again leaning into her reputation as a high-conviction, contrarian investor. Despite a sharp decline in the stock’s price, Ark Invest has added another $11 million worth of shares in a struggling crypto-related company — signaling that Wood believes the market has overreacted.

For followers of Ark, this move isn’t surprising. Wood has consistently argued that disruptive technologies often look weakest right before long-term value begins to emerge. In this case, the stock has been under pressure due to a mix of crypto market volatility, investor risk-off sentiment, and concerns around near-term profitability. Many investors have been heading for the exits — but Wood is doing the opposite.

Ark’s thesis appears unchanged: crypto infrastructure, custody, exchanges, and blockchain services are still in the early stages of adoption. Short-term pain, in Wood’s view, doesn’t invalidate the long-term trajectory. By buying while sentiment is deeply negative, she’s effectively doubling down on that belief.

Of course, this strategy isn’t without risk. Critics argue that repeated dip-buying can turn conviction into stubbornness if fundamentals fail to improve. But for Wood, timing markets has never been the goal — owning what she believes will define the next decade is.

Whether this move proves bold or costly will depend less on today’s price action and more on whether crypto’s next growth cycle actually arrives.