Coinbase (COIN) Share Sale Is “Active Management” – Cathie Wood
ARK Invest’s Cathie Wood has attempted to correct the narrative that her firm is currently dumping its Coinbase (COIN) shares.
Cathie Wood Debunks Coinbase Selloff
During a recent “Ask Me Anything” AMA Q&A session on the social media platform Reddit’s r/Cryptocurrency page, one user asked for the rationale behind ARK Invest’s sales of Coinbase shares.
He particularly insinuated that the company was dumping the shares. In response to his inquiry, Wood clarified that ARK Invest was not dumping, rather it was practicing active management of its portfolio.
According to the CEO of the investment management firm, “Coinbase has increased roughly 9-fold since Spring of 2023.”
She pointed out that Coinbase accounted for “more than 10% of the portfolio. We are simply taking profits. It is still the number 1 position and we are redeploying those profits into stocks that, just like Coinbase roughly a year ago, have been hurt by very short-term news, including Tesla, and a lot of them are in the life science space.”
Consistent COIN and HOOD Offloading
The user’s inquiry came as a result of several offloads of COIN that ARK Invest has been involved in. In March alone, quite some Coinbase shares as well as Robinhood shares (HOOD) were sold off. Last week, Ark Invest divested nearly $54.04 million worth of Coinbase and Robinhood stock.
Precisely, the firm sold 133,533 Coinbase shares from its ARK Innovation ETF (ARKK) and another 59,125 shares from ARK Next Generation Internet ETF (ARKW) worth. Also, Cathie Wood’s firm divested 96,003 Robinhood shares worth $1.77 million from ARKW. It is worthy of note that these sales took place when both stocks rallied, attaining a fresh 52-week high.
By the end of that week, ARK Invest had reportedly divested a total of $122 million worth of shares in COIN and HOOD. Just two days before the AMA session, Ark Invest offloaded 74,291 Coinbase shares worth $20.8 million.
Cathie Wood’s explanation for the consistent COIN shares offloading exercise might sit well with many community members because the stock in question is currently performing well in the market.
COIN closed in the market on March 28 at $265.12 with a 3.28% increase.
The post Coinbase (COIN) Share Sale Is “Active Management” – Cathie Wood appeared first on CoinGape.
Filed under: News - @ January 1, 1970 12:00 am