Cathie Wood’s ARK Invest snaps up $5.4M worth of Coinbase shares

Amidst a significant market sell-off that saw Bitcoin (BTC) momentarily fall below $50,000, Cathie Wood’s investment firm, ARK Invest, has resumed purchasing Coinbase (COIN) stock.

Following a protracted period of selling the stock in 2024, ARK resumed buying on August 5th, purchasing 28,632 Coinbase shares.

Massive volatility in traditional equities markets caused a notable decrease in cryptocurrency markets, which coincided with ARK’s return to purchasing Coinbase.

Cathie Wood and Ark Invest's trade activity from today 8/5 pic.twitter.com/NEWHxcOLjJ

— Ark Invest Daily (@ArkkDaily) August 6, 2024

ARK Acquires More Coinbase Shares

In addition, ARK paid $11.19 million for 681,885 shares of Robinhood (HOOD), the cryptocurrency-friendly online brokerage, its first buy since February 13.

Most of the purchases came from the ARK Innovation ETF (ARKK), which acquired 65,165 Coinbase shares. The ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF) also participated, gaining 13,003 and 15,629 shares in Coinbase, respectively.

Similarly, the ARKK fund purchased 461,100 shares of Robinhood, while the ARKF and ARKW funds increased their company holdings by 110,402 and 110,383, respectively.

According to coinmarketcap statistics, on August 5, Bitcoin fell below $50,000 for the first time, reaching as low as $49,800. The price decline obliterated much of Bitcoin’s recent gains; on August 1, the cryptocurrency fell more than 20% from roughly $63,000 to around $55,000, and it then recovered to around $55,000.

As of this writing, Coinmarketcap shows that the price of Bitcoin was $55,373, up around 10.48% in the last 24 hours but still down 16% over the previous seven days.

$26 million of Jack Dorsey’s Block shares dumped by ARK

On Monday, August 5, both COIN and HOOD had significant declines in the value of their stocks; amid a general market sell-off, COIN saw a 7.3% decline to finish at $189.47, while HOOD saw an 8.17% decline to $16.42. One of the worst downturns in recent memory impacted the global stock and cryptocurrency markets.

ARK increased trading in additional cryptocurrency-related equities and exchange-traded funds (ETFs) based on Ether ETH futures and restarted its purchases of Coinbase. On August 5, ARK sold 454,775 shares of Jack Dorsey’s Block, which were valued at around $26 million at the time of the transaction.

ARK sold 70,316 ProShares Ether Strategy ETF (EETH) shares for $3.4 million, among other cryptocurrency-related transactions. ARK also sold 17,303 ARKZ shares for about $470,000 from their hoard of Ether futures ETFs, the ARK 21Shares Active Ethereum Futures Strategy ETF.

ARK Invest usually buys more equities when the market is down and plans to sell them when the price increases. Recently, COIN shares have been sold since the company maintains its portfolio such that no single investment may account for more than 10% of its ETFs’ value.