Cathie Wood’s ARK Buys Coinbase Stock as Bitcoin Hits Multi-Month Lows
TLDR
ARK Invest purchased 41,032 Coinbase (COIN) shares worth $9.3 million as Bitcoin fell to multi-month lows
The purchase came through ARK’s Next Generation Internet ETF (ARKW) while simultaneously selling $8.6 million of their Bitcoin ETF (ARKB)
Coinbase shares dropped over 20% in the past week, closing at $212.49 on February 25th
Market turbulence was triggered by Trump’s announcement of new tariffs on Canada, Mexico, and China
ARK made several other notable trades on February 25th, including selling Roku shares worth $9.8 million and buying Tempus AI shares worth over $31 million
Cathie Wood’s ARK Invest purchased $9.3 million worth of Coinbase shares on February 25th as cryptocurrency and tech stocks faced a sharp decline. The move comes at a time when Bitcoin fell to its lowest level since November 2024, trading at $88,534.
The investment firm bought 41,032 shares of Coinbase Global Inc. (COIN) through its ARK Next Generation Internet exchange-traded fund (ARKW). This purchase is worth noting as it comes just over two months after ARK sold $4.3 million of COIN stock in late December.
Coinbase shares have struggled recently, dropping more than 20% in the past week. The stock closed at $212.49 on February 25th, down 6.42% for the day. This decline followed Bank of America Securities lowering its price target for Coinbase from $363 to $311, citing increased competition from traditional financial firms entering the crypto space.
The broader crypto market experienced major turbulence at the same time, with over $1 billion in liquidations occurring in a 24-hour period. This market downturn was reportedly triggered by President Donald Trump’s confirmation of new tariffs on imports from Canada and Mexico, along with a 10% tariff on Chinese goods.
Investors showed concern that these tariffs could increase costs and potentially fuel inflation, creating more economic uncertainty. These worries pushed both tech stocks and risk assets like Bitcoin lower. The tech-heavy Nasdaq Composite index fell 1.35% on the same day.
Bullish on Coinbase
Despite these negative market conditions, ARK Invest appears to remain bullish on Coinbase. This confidence may stem from Coinbase’s strong fourth-quarter earnings report, which showed a 138% increase from 2023 and exceeded analyst expectations.
Another factor possibly influencing ARK’s decision was the recent announcement that the U.S. Securities and Exchange Commission has dropped its lawsuit against Coinbase. This legal action had been one of the SEC’s biggest crypto-related enforcement actions under former chair Gary Gensler.
While buying Coinbase shares, ARK simultaneously sold 98,060 shares of its own ARK 21Shares Bitcoin ETF (ARKB) from the same ARKW fund. This sell-off was valued at approximately $8.6 million based on the ETF’s closing price of $87.86 on Tuesday.
The Coinbase purchase was just one of several trades made by ARK on February 25th. The investment firm also sold 107,159 shares of Roku Inc. worth nearly $9.8 million through its ARKK ETF. In contrast, ARK bought 445,958 shares of Tempus AI Inc. across its ARKK and ARKG ETFs, totaling over $31 million.
In the biotech sector, ARK sold 850,919 shares of Accolade Inc. for about $5.9 million through its ARKG ETF and 120,149 shares of DraftKings Inc. across its ARKK and ARKF ETFs, worth approximately $5.3 million. The firm also divested 430,483 shares of SoFi Technologies Inc. through its ARKK ETF, valued at about $6.2 million.
On the buying side, ARK showed interest in ABSCI Corp, purchasing 97,505 shares worth around $436,334, and in Recursion Pharmaceuticals Inc, acquiring 103,430 shares with a total value of $930,870, both through its ARKG ETF.
The total cryptocurrency market capitalization decreased by 3.2% during this period, falling to $3.04 trillion as Bitcoin and other cryptocurrencies experienced downward pressure following the tariff announcements.
The post Cathie Wood’s ARK Buys Coinbase Stock as Bitcoin Hits Multi-Month Lows appeared first on CoinCentral.
Filed under: News - @ February 26, 2025 5:29 pm