Ark Invest's Wood turned a $100,000 investment in Bitcoin into $7 million

Cathie Wood said she currently owns more than $7 million in bitcoin, which she bought on the advice of Reagan-era economist Arthur Laffer while it was trading at $250.

CEO of ARK Investment Management subscriber The information was reported last week in a podcast interview titled “What Bitcoin Did for Peter McCormack.” She added that she invested $100,000 in Bitcoin, which is now worth more than $7 million.

Although Wood did not reveal the year she purchased it CryptocurrencyThe amount it was trading at when she bought it suggests it was sometime in 2015.

She also added that she did not sell any of that initial investment.

Laffer was Wood's mentor at USC, who got her interested in Bitcoin.

Laffer advised her that Bitcoin is a rules-based monetary system and that he had been looking for it “since we went off the gold standard.”

When Wood asked him how big Bitcoin was, Laffer replied, “How big is the US monetary base?” Around that year, Bitcoin's market cap was about $6 billion, and the US monetary base was $4.5 trillion.

When factoring in the current price of around $19,250, Wood made a massive profit of over $7.6 million on her $1,000,000 investment.

However, she was unable to achieve the same level of success with her company – which she co-founded – as they were unable to use ARK funds alongside investing in securities until recently.

ARK Investment Management focuses on innovative and disruptive investments. The company's value soared during the 2020 stock market boom, as its investments in unprofitable technology companies yielded profitable results, attracting a massive amount of money into its exchange-traded funds (ETFs).

Although ETFs are limited to investing in securities, Ark began exploring ways to invest in Bitcoin through products like the Grayscale Bitcoin Trust and eventually added it to several funds.

Image source: Shutterstock