08.08.2024
Mirjan Hipolito
Cryptocurrency and stock expert
08.08.2024

Ark Invest boosts Coinbase stake amid market downturn

Ark Invest boosts Coinbase stake amid market downturn Ark Invest boosts Coinbase stake amid market downturn

Taking advantage of the market turbulence, Ark Invest, led by Cathie Wood, significantly increased its stake in Coinbase, acquiring shares worth approximately $17.8 million.

This purchase marks a notable shift after months of offloading Coinbase stock, with Ark now positioning itself for future gains as the market stabilizes.

During a tumultuous Monday in financial markets, Ark Invest, the investment firm headed by Cathie Wood, seized the opportunity to enhance its position in Coinbase, the largest cryptocurrency exchange in the U.S. According to Ark Invest’s August 5 trade activity report published on X, the firm purchased 93,797 shares of Coinbase (COIN), valued at around $17.8 million at an average price of $189 per share.

As reported by CryptoPotato, Ark Invest executed the COIN purchase through three of its exchange-traded funds (ETFs). Specifically, ARK Innovation ETF (ARKK) acquired 65,165 shares worth $12.3 million, Ark Fintech Innovation (ARKF) added 15,629 shares for $3 million, and ARK Next Generation Internet ETF (ARKW) bought 13,003 shares valued at $2.5 million. This acquisition is Ark Invest’s first since June 2023 when it last purchased $21 million worth of COIN.

The investment firm had been selling Coinbase stock to capitalize on its rising value as the cryptocurrency market surged. For instance, Ark sold around $150 million worth of COIN in mid-March 2024, when Bitcoin reached an all-time high of $73,000, driving COIN shares above $280. Other significant sales occurred in March and May 2024, further reducing Ark’s COIN holdings.

The recent purchase comes amid a broader market downturn, which saw COIN’s price drop to $173 on Monday before rebounding to $197. Ark’s increased stake in Coinbase suggests a good step to leverage potential future market rallies.

As the market stabilizes, Ark Invest’s renewed confidence in Coinbase and other crypto-related assets could signal a bullish outlook for the sector.

See also: Binance to list Toncoin (TON) with Seed tag

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