Ark Invest Boosts Coinbase Stock as Markets Recover

Ark Invest has once again increased its holdings in several tech and crypto-linked stocks. This move shows its confidence in the market’s rebound after Monday’s sharp drop. 

The firm, led by Cathie Wood, continued to adjust its fund weightings as part of its ongoing strategy to stay balanced during periods of volatility.

Ark’s Fresh Coinbase Stock Purchase Signals Steady Confidence

On December 3, Ark Invest added 28,315 Coinbase shares, valued at about $7.5 million, to its Ark Innovation ETF (ARKK). This purchase came as markets recovered from the previous day’s slump.

The move followed a much larger buying round announced in November, when Ark acquired $16.5 million worth of Coinbase shares across three of its exchange-traded funds (ETFs). These frequent adjustments are part of Ark’s rule to prevent any single stock from representing more than 10% of a fund. 

As Coinbase’s price moves, Ark continues to rebalance to maintain fair diversification. As of Dec. 3, Coinbase is the second-largest holding in ARKK with a 5.6% weighting, equal to around $409.6 million. Only Tesla ranks higher, with a position valued at $900.2 million.

Additional Buys Strengthen Ark’s Positions

Alongside the Coinbase purchase, Ark Invest made two more notable moves on Tuesday. It bought 42,434 shares of Bullish, worth $1.8 million, for ARKK as the stock rose 5%. Additionally, the company added 1,951 Robinhood shares, valued at $245,000, to the Ark Next Generation Internet ETF (ARKW).

These moves show Ark’s continued belief in companies tied to digital assets and next-generation online platforms, even in a volatile market. 

Following the acquisition announcement, Coinbase’s stock closed 1.3% higher at $263.26, recovering after dropping heavily on Monday. It also showed strength in pre-market trading on Wednesday, rising 4.2%.

Crypto Prices Jump, but Coinbase and Miners Show Mixed Performance

The broader crypto market saw a strong bounce. Bitcoin (BTC) fully reversed its 7% Monday loss and climbed back above $91,000. At the time of writing, the top coin is trading at $92,000, up by 6.12% in the last 24 hours, according to CoinMarketCap data. 

Ethereum (ETH) also gained 7%, returning to the $3,000 mark, while the GMCI 30 index, which tracks 30 major cryptocurrencies, rose 6.2%. This recovery helped support confidence in crypto-related stocks, including Coinbase.

Despite the slight rebound, Coinbase shares remain under pressure. The stock is down 21.7% over the past month and is only 2.6% up for the year. It has fallen 37% from its summer high. According to in-chain data, Coinbase currently holds a market value of $49 billion. 

Meanwhile, other crypto-linked stocks recovered on Tuesday. Strategy’s stock MSTR gained 5.8%, Metaplanet rose 4.6%, and BitMine jumped 10.3%. However, some Bitcoin miners focused on Artificial Intelligence (AI) struggled, with IREN dropping 15.2%, Cipher Mining sliding 10.4%, and TeraWulf falling 7.1%.