JUST-IN: Cathie Wood’s Ark Invest Sells $2.7M Worth of Coinbase Shares, COIN

Investment firm Cathie Wood’s Ark Invest has resumed the sale of shares in Coinbase, the popular cryptocurrency exchange platform, offloading a significant amount of stock valued at $2.7 million.

Cathie Wood's Ark Invest is BACK AT IT.

Resumed selling Coinbase shares.

Offloading $2.7 million worth of COIN.

Ark Invest's moves might signal one of two things:

Shifting strategies or a response to market conditions.

On the other hand, Pelosi is buying NVIDIA which added…

— Iqbal Khan (@_iqbalkhan777) August 1, 2024

In a first, since it sold Coinbase shares (COIN) worth $4.3 million on July 19, the Cathie Wood-led investment firm offloaded another 12,077 Coinbase shares on Wednesday from its Next Generation Internet exchange-traded fund (ARKW). This decision was part of the firm’s strategy to make sure no single investment overshadows the rest of the portfolio — a calculated strategy often referred to as ‘rebalancing the books.’

Earlier in the year, Ark Invest snapped up $30 million in Coinbase shares amid a market sell-off. This bold move was made even as Coinbase’s shares tumbled roughly 30% after unveiling financial results that reflected a quarterly loss of $430 million and a 19% drop in monthly users.

📍JUST IN: Cathie Wood's #ARK buys $13 mill of #Coinbase shares

The purchase appears to be ARK's biggest of the year, eclipsing the $9.2 million order earlier this month 👀 pic.twitter.com/ceoPzTevy8

— RR2Capital (@RR2Capital) February 23, 2023

Albeit, Ark’s latest update shows that Coinbase (COIN) is now the fourth-biggest investment in its ARKW fund, making up 7.3% of the total. This puts it behind Ark’s Bitcoin fund, Tesla, and Roku, which comprise 11%, 10%, and 8.4%, respectively. The Coinbase investment is currently worth $102.4 million, with the ARKW fund enjoying a 33% profit in value over the past year.

There’s an Impending Ripple Effect

As pointed out, this sale is part of a larger trend where Ark has been reducing its stake in Coinbase. Earlier, they sold nearly $150 million worth of Coinbase shares, which was their largest offload since February. Adding to that, Ark sold 118,209 shares of its Bitcoin fund (ARKB) from its ARKW fund just last week. The shares were worth $7.8 million.

Ark’s sell-off comes at a time when Coinbase’s stock has been experiencing serious market swings. The company’s shares have seen a healthy increase in value, thanks to a surge in Bitcoin’s price as a result in part to the Halving earlier. Meanwhile, Ark’s recent sell-off has added to the uncertainty in the market.

On Wednesday, Coinbase’s stock price ended the day at $224.36, unchanged from the day before as of the time of writing. Despite this bump, the stock has risen nearly 30% so far this year. However, it’s still 35% below its record high of $342.98, which was reached in November 2021.

COIN/USD price chart. Image: TradingView.

Ark Invest is Keeping their Portfolio Within Sight 

Despite the recent sell-offs, Cathie Wood is not backing down in her conviction to invest in companies focused on innovation. Her firm continues to load up portfolios across Ark with companies that have been hit hard by recent pressures in high-growth technology stocks.

By not letting any single investment, like Coinbase, take up more than 10% of their ETF’s value, they’re keeping their portfolio diverse and ready for whatever the market throws their way.