On Wednesday, Cathie Wood-led Ark Invest made a significant move by selling a substantial portion of its stake in DraftKings Inc DKNG.
The DraftKings Trade
The sale, valued at nearly $8.04 million, was made through the company’s flagship ARK Innovation ETF ARKK. The total number of shares sold amounted to 229,215. On Wednesday, DraftKings stock rose 4.2% to $35.07.
Ark Invest’s decision to sell shares of DraftKings appears as a pivotal shift, especially considering the company’s previous stance on the sports betting giant. As detailed in a Benzinga article, DraftKings has been a key holding for Ark, standing out in the sports betting sector.
Ark saw slim odds in August that Disney’s ESPN Bet platform could break “Draftkings-FanDuel” Duopoly in sports betting.
In a Benzinga exclusive, Wood said that she would be keeping an eye on ESPN Bet’s launch. She said at the time, “We will be watching the share gains carefully.” At the time, the fund manager said that she was “very pleased with what DraftKings has done over the last couple years.”
Additionally, Ark’s previous actions, such as trimming its DraftKings stake to invest in Bitcoin-linked stocks, as mentioned in a Benzinga article, suggest a strategic realignment in its investment approach.
Other Key Trades:
- Ark Invest bought 633,053 shares of Recursion Pharmaceuticals RXRX, emphasizing its focus on innovative biotech firms through ARKK and ARK Genomic Revolution ETF ARKG.
- The firm also increased its position in CRISPR Therapeutics AG CRSP by purchasing 166,616 shares through ARKK and ARKG, highlighting its interest in gene-editing technologies.
- Additionally, Ark acquired 886,107 shares of Ginkgo Bioworks Holdings Inc DNA through ARKK and ARKG, further diversifying its portfolio in the biotech sector.
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