ARK Invest Adds Additional Coinbase Shares to its Portfolio

Cathie Wood who has recently been on a roller coaster ride with her Coinbase shares has made a significant investment in the stock through her company ARK Invest. Based on an investor’s email, the investment management firm ARK Invest initially added $3.9 million worth of Coinbase (COIN) shares to its portfolio on Wednesday. The shares covered by this value were around 63,585 COIN, across two funds.

At the time, this was tagged Cathie Wood’s most significant purchase of the year, especially after she dumped a huge amount of COIN shares last year. The 63,585 COIN shares were distributed between the Ark Innovation ETF and Ark Next Generation Internet ETF (ARKW) with both funds receiving 53,783 and 9,802 shares respectively. On Thursday, ARK Invest added more COIN shares to its portfolio.

This brought the overall Ark Innovation ETF addition to 181,972 shares with an estimated value of $11.4 million, and Ark Next Generation Internet ETF rose to 31,547 COIN shares valued at $1.93 million. Altogether, the total Coinbase share added by the investment management firm was worth $13.2 million (213,519 shares).

Considering the total purchase done last week (133,321 shares), the Wednesday/Thursday acquisition surpassed it significantly. 

ARK Invest Displayed Lack of Enthusiasm towards Coinbase Shares

In July 2022, Wood who is generally recognized as a strong supporter of American cryptocurrency exchange Coinbase Global began to express a lack of interest in the latter. During that time, ARK Invest sold $1.4 million worth of its Coinbase shares. While the COIN sold were across both funds, a majority of the offloaded shares were from the Ark Innovation ETF.

This happened only two months after Cathie Wood revealed that her investment arm had ditched all its buildings in PayPal and instead adopted Cash App, Block Inc.’s Bitcoin (BTC) friendly payment company. 

Markedly, the Coinbase Q4 earning report shows that the company had performed better than expected. This is not to say that there were no losses, especially with the unbearable crypto winter that hit the industry last year. In 2022 alone, the Coinbase stock lost about 86% of its value but began to recover at the beginning of this year.