Cathie Wood said she currently owns over $7 million worth of bitcoin, which she bought on the advice of Reagan-era economist Arthur Laffer when it was trading at $250.
CEO of ARK Investment Management shared information last week in a podcast interview called What Bitcoin Did with Peter McCormack. She added that she invested $100,000 in Bitcoin, which is now worth over $7 million.
Although Wood did not reveal the year she bought cryptocurrencythe amount it was trading for when she bought it suggests it was sometime in 2015.
She also added that she did not sell any of these initial investments.
Laffer was Wood’s teacher at the University of Southern California who asked her to get interested in bitcoin.
Laffer advised her that Bitcoin was a rules-based monetary system and had been looking for it “since we left the gold standard.”
When Wood asked how big Bitcoin could be, Laffer replied, “How big is the US monetary base?” Around that year, Bitcoin’s market cap was around $6 billion, and the US monetary base was $4.5 trillion.
Converting to the current price of about $19,250, Wood made a whopping profit of over $7.6 million on her $1,000,000 investment.
However, she has not been able to achieve the same success with her co-founded company, as until recently she was unable to use ARK funds in addition to investing in securities.
ARK Investment Management focuses on innovative and disruptive investments. The company’s value soared during the stock market boom of 2020, with its investments in unprofitable tech firms paying off lucratively, attracting massive amounts of funds to its exchange-traded funds (ETFs).
Although ETFs are limited to investing in securities, Ark began exploring ways to invest in bitcoins through products like the Grayscale Bitcoin Trust and eventually added them to several funds.
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