"Can She Be Trusted?" 'Money Tree Sister' Bought Another $105 Million Worth of SpaceX

[Financial News] Cathie Wood, the CEO of ARK Investment Management and widely known as the "Money Tree Sister" for her skill in investing in U.S. tech stocks, has reportedly used funds raised by selling Alibaba Group shares to buy more SpaceX stock.
On the 8th (local time), Fortune reported that ARK Investment Management recently bought an additional $7 million worth of Elon Musk's SpaceX, or about 10.5 billion won.
SpaceX, the space company led by Musk, went public through an Initial Public Offering (IPO) last month. Right after the listing, Musk briefly became the world's first "trillion-dollar billionaire." However, SpaceX, which had once surged to $225, has since fallen sharply and closed at $152 on the 9th.
ARK nevertheless moved ahead with aggressive buying, citing analysis that SpaceX could reach a valuation of $3.1 trillion by 2030 in a best-case scenario. On the day of the listing, the firm also bought about 3.3 million shares through an exchange-traded fund (ETF), and later purchased $32 million worth of shares when the first major wave of selling hit after the debut.
ARK's flagship Innovation ETF now holds 1.78 million SpaceX shares, worth about $266 million, after the latest purchase. SpaceX has become the fund's seventh-largest holding and now accounts for 4% of its total assets.
ARK's aggressive stance is tied to its 2026 flagship report, "Big Ideas." The firm has praised SpaceX's long-term outlook, saying the company has cut the cost of sending objects into space by about 95% since 2008, bringing it down to around $1,000 per kilogram. Musk's plan for an orbital data center also appears to have influenced the positive assessment.
However, a semiconductor expert and professor at Rensselaer Polytechnic Institute pointed out that simply transporting the solar panels needed to generate power in space would already cost a great deal. Masayoshi Son, chairman of SoftBank, also noted that building a space-based data center would require a long time and massive investment.
Meanwhile, Wood reportedly financed the latest purchase by selling Alibaba Group shares. After partially cashing out in 2021 amid tighter regulation by the Chinese government, Wood resumed investing in Alibaba Group last year with $16.3 million for the first time in four years, only to reduce her stake again for this latest move.
[email protected] Kim Hee-sun Reporter