Ark Invest Sells $12M Coinbase Shares
Ark Invest, the investment management firm led by Cathie Wood, has made a move to sell a portion of its holdings in Coinbase, the renowned cryptocurrency exchange. According to reports from Bloomberg, the ARK Innovation exchange-traded funds (ETF), managed by Ark Invest, recently divested 135,152 Coinbase (COIN) shares, amounting to a value exceeding $12 million based on COIN’s closing price of $89.15 per share.
Cathie Wood’s Ark Invest sold Coinbase shares as stock rallies https://t.co/3ofAP3WSju
— The Block (@TheBlock__) July 12, 2023
Strategic Sell-Off of Coinbase Shares
This marks the second time in 2022 that Ark Invest has taken advantage of the surging price of Coinbase shares. In March, the ARK Fintech Innovation ETF sold more than 160,000 shares, generating over $13.5 million in revenue. The recent sell-off demonstrates Ark Invest’s strategic decision to capitalize on the price movements of Coinbase stock.
In June, Ark Invest had bolstered its portfolio by purchasing 419,324 shares of Coinbase. The move followed a significant decline in Coinbase’s stock value, resulting from a lawsuit filed by the Securities and Exchange Commission (SEC) against the company. The lawsuit led to a 21% drop in Coinbase’s stock price, presenting an opportune moment for Ark Invest to increase its holdings.
Coinbase’s 16% Surge
Coinciding with Ark Invest’s sell-off, Coinbase experienced a 16% surge in its stock price, reaching $92. This rise came shortly after the cryptocurrency exchange entered into a surveillance-sharing agreement with five companies that are seeking approval for a spot bitcoin exchange-traded fund (ETF). This collaboration enhanced Coinbase’s standing and instilled investor confidence, resulting in the notable increase in its stock price.
As one of the largest holders of Coinbase shares, Ark Invest’s actions carry significant weight in the cryptocurrency investment landscape. The firm’s decision to sell a portion of its Coinbase holdings highlights its strategic approach to portfolio management and capitalizing on market opportunities. It remains to be seen how these recent developments will shape future trading activity of both Ark Invest and Coinbase, as well as their overall investment strategies in the dynamic cryptocurrency market.
