August mARKet Update Webinar Summary

In ARK’s August mARKet Update Webinar, our investment team provided a comprehensive overview of the macroeconomic environment, discussed the forces shaping our portfolios, and answered questions from clients and partners. With insights spanning artificial intelligence, genomics, robotics, and digital assets, the discussion underscored how ARK remains focused on investing at the pace of innovation. Below is a summary of the team’s responses to investor-submitted questions. For further insights, please view the full August mARKet Update Webinar here.

How Do You Structure Your Investment Process To Adapt Quickly To The Rapid Pace Of AI While Maintaining A Long-Term Portfolio Focus?

Cathie Wood, ARK’s Chief Executive Officer and Chief Investment Officer, explained how ARK is purpose-built for this era of exponential innovation. The firm’s investment process begins with top-down research, modeling the market impact of learning curves and declining costs across emerging technologies. This is followed by a disciplined bottom-up approach, applying six core metrics: people, execution, moat, product/service leadership, valuation, and thesis risk.

Wood emphasized that valuation discipline is embedded through assumptions of multiple compression over ARK’s five-year investment horizon. She also highlighted the powerful tailwind of deregulation, particularly in sectors like healthcare, where generative AI is reshaping regulatory and clinical workflows.

Is There The Potential For Large Language Models To Be Commoditized, And Is This A Winner Takes Most Market?

Frank Downing, Director of Research, Next Generation Internet, addressed this nuanced question by observing two simultaneous dynamics: increasing competition among top-tier model developers, and a winnowing of sub-scale players unable to meet the capital and talent demands of frontier AI development.

He noted that companies like OpenAI, Google, Anthropic, and xAI are leapfrogging one another in terms of model quality. Meanwhile, in the enterprise stack, horizontal platforms such as Palantir—now a high-conviction ARK holding—are emerging as essential infrastructure for deploying AI at scale. Downing concluded that while certain layers of the stack could commoditize, value accrual will center on integrated solutions that offer data, tools, and user experience advantages.

How Are Broader Government, Macro, And Food And Drug Administration (FDA) Factors Influencing The Healthcare Sector, And How Might Those Dynamics Shape ARKG’s Path Toward Closing The Performance Gap With The Rest Of The ARK ETF Suite?

Nemo Marjanovic, PhD, Research Analyst, Multiomics, along with contributions from Cathie Wood and other team members, outlined several converging trends. High interest rates and tight capital conditions have pressured early-stage biotech companies, but expected rate cuts could extend runways.

Strategic merger and acquisition (M&A) activity is also resuming, highlighted by Eli Lilly’s $1.3 billion acquisition of Verve Therapeutics, a validation of in-vivo gene editing. Most importantly, the appointment of Dr. Marty Makary as FDA Commissioner signals a regulatory environment increasingly supportive of innovation, AI, and data integration—critical ingredients for growth in ARKG.

Can You Please Provide An Update On Tempus AI Following The Recent Earnings Report?

Marjanovic also provided an in-depth update on Tempus AI. The company reported strong second-quarter results, with $340 million in revenue and 35% year-over-year growth in its data and services segment.

He described Tempus as pursuing a bold, AI-first approach to diagnostics, expanding from oncology into cardiology, rare diseases, and beyond. With its growing data moat and predictive capabilities, Marjanovic likened Tempus to “the Tesla of diagnostics,” and Wood concurred, describing it as the likely information backbone of the US healthcare system.

According To Your Modeling, What Does Timing Look Like For Humanoid Robots At Mass Scale And Adoption?

Sam Korus, Director of Research, Autonomous Technology & Robotics, projected a 5–10 year timeline for mass adoption of humanoid robots. While production will scale into the thousands in the near term, real mass adoption will depend on the expansion of AI capabilities and task-specific applications.

He noted that near-term commercial use cases—in factories and controlled environments—will pave the way for broader societal adoption over time. Humanoid robots, he added, eventually could redefine the nature of labor and productivity across the global economy.

Please Compare Your 5-Year Outlooks For Joby And Archer.

Korus emphasized that both Joby and Archer are leaders in the nascent eVTOL space, and ARK sees room for multiple winners. Joby is further along with its testing and vertically integrated approach, while Archer is progressing quickly, especially through strategic partnerships and government support.

Both aim to commercialize services in the Middle East in the near term, and in the US by the time of the 2028 Olympics in Los Angeles. ARK views the sector as transformative for urban mobility, with strong long-term tailwinds.

What Does The Dojo Shutdown Mean For Tesla And Its Shareholders?

Downing explained that Tesla’s decision to halt development of its Dojo training chip reflects a strategic refocus. While Tesla continues to innovate in inference chips for in-vehicle applications, competing with Nvidia in the data center training space proved inefficient.

Instead, Tesla will concentrate efforts on its upcoming AI6 chip, optimized for both training and inference, in partnership with Samsung’s US-based fabrication facilities. This move reinforces Tesla’s edge in vertical integration while avoiding duplicative capital expenditure.

What Is Your Vision For Bitmine Immersion Technologies (BMNR)?

Lorenzo Valente, Director of Research, Digital Assets, detailed ARK’s investment thesis for Bitmine Immersion Technologies. Led by Tim Lee, BMNR is a digital asset treasury (DAT) focused on accumulating Ethereum and maximizing staking yields.

Unlike ETFs, which face structural challenges around staking due to liquidity constraints, BMNR benefits from a permanent capital structure. Valente pointed out that BMNR's ether-per-share growth has outpaced ETH price appreciation, suggesting significant operational leverage. ARK believes BMNR is well-positioned as a yield-optimized ETH exposure vehicle in a winner-takes-most environment.

How Are USDT And USDC Different?

Valente explained that while both stablecoins function similarly on a technological level, their backing and geographic reach differ. USDC, issued by Circle, is primarily backed by short-term U.S. Treasuries and serves developed markets. USDT, issued by Tether, includes alternative assets like Bitcoin and gold in its reserves and dominates in emerging markets.

Cathie Wood noted that the difference could evolve into a distinction between price stability (USDC) and purchasing power stability (USDT), hinting at future diversification in the role stablecoins play in the global financial system.

Conclusion

The August mARKet Update illustrated ARK's enduring commitment to investing in disruptive innovation. With a disciplined research approach and a focus on convergence across sectors, ARK continues to identify technologies that are reshaping the global economy. As always, ARK remains transparent, forward-looking, and dedicated to empowering investors with insight and opportunity.

Stay tuned to our In The Know video series for deeper insights about deflation, innovation, and macroeconomic developments.

Important Information

The information provided in this material is for informational purposes only and should not be used as the basis for any investment decision and is subject to change without notice. It does not constitute, either explicitly or implicitly, any provision of services or products by ARK, and investors should determine for themselves whether a particular investment management service is suitable for their investment needs. All statements made regarding companies or securities are strictly beliefs and points of view held by ARK and are not endorsements by ARK of any company or security or recommendations by ARK to buy, sell or hold any security. Historical results are not indications of future results. 

Certain of the statements contained in this material may be statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. ARK assumes no obligation to update any forward-looking information. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain information was obtained from sources that ARK believes to be reliable; however, ARK does not guarantee the accuracy or completeness of any information obtained from any third party.

Bitcoin is a relatively new asset class, and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin is subject to unique and substantial risks, including significant price volatility and lack of liquidity, and theft. 

Bitcoin is subject to rapid price swings, including as a result of actions and statements by influencers and the media, changes in the supply of and demand for bitcoin, and other factors. There is no assurance that bitcoin will maintain its value over the long term.

ARK strongly encourages any investor considering an investment in bitcoin or any other digital asset to consult with a financial professional before investing. All statements made regarding bitcoin are strictly beliefs and points of view held by ARK and are not recommendations by ARK to buy, sell or hold bitcoin. Historical results are not indications of future results.

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