Ark Invest Expands Coinbase Holdings Amid Market Turmoil
In an unexpected turn during Monday’s financial market turmoil, Cathie Wood’s investment firm, Ark Invest, made a significant move by purchasing shares of Coinbase, the largest cryptocurrency exchange in the United States. This acquisition marked a departure from a trend of selling off the stock over the preceding months.
As detailed in a tweet from Ark Invest, the firm acquired a total of 93,797 shares of Coinbase (COIN), valued at around $17.8 million, with an average purchase price of $189 per share on August 5.
Details of the Acquisition
The purchase was executed through three of Ark Invest’s exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the Ark Fintech Innovation ETF (ARKF), and the ARK Next Generation Internet ETF (ARKW). Specifically, ARKK added 65,165 shares for $12.3 million, ARKF acquired 15,629 shares valued at $3 million, and ARKW bought 13,003 shares worth $2.5 million.
This latest acquisition is Ark Invest’s first significant purchase since June 2023, when it invested $21 million in Coinbase shares. Following that purchase, the investment firm had been gradually offloading its Coinbase holdings to capitalize on the asset’s rising value in tandem with the broader cryptocurrency market.
Previous Sales and Market Trends
Reports from CryptoPotato highlighted some of Ark Invest’s earlier sales, particularly in March and May. In mid-March, the firm executed its second-largest weekly sale of Coinbase shares since July 2023, liquidating approximately $150 million worth of shares, totaling around 580,000. By the end of March, Ark further reduced its holdings by 74,291 shares, valued at $20.8 million. Additionally, in early May, the firm sold off 70,616 shares for $15 million.
During these periods of selling, especially in mid-March, Bitcoin (BTC) was experiencing a significant upward trend, reaching an all-time high of $73,000, which positively influenced the crypto market. Consequently, Coinbase shares witnessed an increase, soaring above $280, compared to approximately $117 in early February.
Strategic Moves Amidst Market Fluctuations
Recognizing the recent downturn in the market as a strategic opportunity, Ark Invest decided to bolster its Coinbase holdings in anticipation of future price recoveries. On Monday, Coinbase shares dipped to a low of $173 before making a slight recovery to $197. According to TradingView, the asset was trading at approximately $191 at the time of this report.
Interestingly, Coinbase was not the only cryptocurrency-related stock Ark Invest acquired; the firm also purchased 681,885 shares of the trading app Robinhood, totaling $11.2 million. In contrast, Ark Invest divested $26 million worth of shares in Block, the payment company co-founded by Jack Dorsey.
