A push towards greater reliance on renewables for bitcoin mining could make the underperforming solar industry more attractive, star fund manager Cathie Wood said at a cryptocurrency conference on Thursday.
The value of bitcoin, the world’s largest cryptocurrency, fell about 30% this month, in part because its negative environmental impacts would discourage companies from adopting it on their balance sheets. Billionaire and Tesla Inc’s (TSLA.O) chief executive Elon Musk said in a May 13 tweet that the electric car maker will no longer accept bitcoin as a form of payment due to the ‘insane’ amount of energy used to produce it.
Ark Invest CEO Wood said during an appearance at the Consensus 2021 conference in Coindesk that bitcoin miners switching to renewable energy sources “will encourage an acceleration in the adoption of renewables beyond which otherwise would have taken place ”.
It could make the solar industry more attractive, Wood said. Ark does not currently invest in solar stocks because it is unclear whether the industry can be profitable within five years without subsidies, she said.
“We haven’t really been able to say that this dynamic could significantly change that about solar power. So I’m very excited about it, ”said Wood.
Solar stocks are seriously underperforming the broader stock market after rebounding last year. The Invesco Solar ETF (TAN.P), for example, is down nearly 23% year-to-date, while the benchmark S&P 500 (.SPX) is up nearly 12%. %.
Wood, for which Ark Innovation ETF was the best-performing U.S. equity fund in 2020, became a household name last year thanks to his outsized bets on stocks that thrived during the pandemic such as Zoom Video Communications Inc (ZM .O) and Tesla.
Yet its performance has stagnated since the start of the year, with value stocks, which tend to be in cyclical sectors of the economy such as finance and energy, outperforming.
Wood’s flagship fund is down nearly 30% from its early February high and is down just over 10% on the year.
Wood, one of Wall Street’s best-known cryptocurrency bulls, said she expects bitcoin to eventually hit $ 500,000. The cryptocurrency traded around $ 39,500 on Thursday.
Ark hired an ether miner to his team of analysts as part of a growing focus on cryptocurrencies, Wood said Thursday, while predicting that deflation would increase the value of bitcoin by putting pressure on currencies. emerging countries dependent on commodities.
“I wouldn’t be surprised if some of these emerging market central banks start accumulating Bitcoin and other currencies because if they know their currencies are going down… they will be attacked as reserves are going down,” he said. she declared.
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