Cathie Wood Shrugs Off Hindenburg Attack On Jack Dorsey's Block With $21M Stock Buy — Slashes Enormous Tesla Stake

Cathie Wood-led ARK Investment Management defied a short-selling report by Hindenburg Research on Jack Dorsey's payment firm Block Inc SQ and loaded up over 338,000 shares of the company at an estimated valuation of $20.9 million based on Thursday's closing price.

The purchase was made via the flagship ARK Innovation ETF ARKK, the ARK Next Generation Internet ETF ARKW and the ARK Fintech Innovation ETF ARKF. All three funds have Block amongst their top five holdings, according to the latest data available on ARK's website at the time of writing.

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Block shares fell below the $58 mark on Thursday morning before paring some of the losses and ending the day 14.82% lower. Interestingly, the stock hasn't recorded much of a loss in extended trading.

Hindenburg Research issued a report alleging that Block is facilitating fraud through a lack of compliance controls on its flagship product, CashApp. After a two-year investigation, the company claimed that Block overstated its genuine user counts while understating its customer acquisition costs.

In response to the allegations, Block said it intends to work with the SEC and explore legal action against Hindenburg for a "factually inaccurate and misleading" report about Block's Cash App business.

Major Sale: Wood's funds decided to offload a large chunk of Tesla Inc TSLA shares on Thursday. Two different funds sold over 139,000 shares of the EV maker at an estimated valuation of over $26.8 million. The sale ignites curiosity because till recently, ARK funds have been buying Tesla shares. Last week, Wood's funds had bought over $4.6 million worth of Tesla shares.

Read Next: Tesla, Block, Netflix, DiamondHead, Amprius: Why These 5 Stocks Are Drawing Heavy Attention Today

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