- As market difficulties persist, ARK Invest bought $13.3 million worth of Coinbase shares.
- Despite the fall, ARK Invest increased its stake in Coinbase showing trust in growth.
- ARK Invest’s move reflects confidence in technologies despite short-term market declines.
Amid a global market downturn, ARK Invest made a notable move by purchasing $13.3 million worth of Coinbase shares. The investment was split between two exchange-traded funds (ETFs), the ARK Next Generation Internet ETF and the ARK Fintech Innovation ETF (ARKF). According to the firm’s recent trade report, ARKW bought 64,806 Coinbase shares, valued at around $10.2 million, while ARKF acquired 19,708 shares, totaling approximately $3.1 million.
ARK’s Bold Move Amid Market Uncertainty
The CEO of ARK Invest, Cathie Wood, and her team believed in the long-term potential of disruptive technology, even amid market uncertainty. Last week, as other investors retreated, ARK took a different approach, showing confidence in the future growth of companies like Coinbase. In addition to the purchase of Coinbase shares, ARK sold $12.4 million worth of shares in its ARK 21Shares Bitcoin ETF (ARKB). According to SoSoValue data, this move included the sale of 159,496 shares, indicating ARK’s strategic adjustments in a volatile environment.
As of Monday, ARK Invest holds more than 3 million Coinbase shares worth $448.7 million. These holdings account for 5.9% of ARK’s entire portfolio, reinforcing the firm’s belief in Coinbase’s long-term growth prospects. Moreover, Coinbase shares now make up 7.65% of the ARKF fund, marking it as the second-largest holding in the ETF, while ARKW holds 5.92% of its shares, making it the fourth-largest holding within that fund.
Related: ARK Invest Bets $8.7M on Coinbase, Sells $8.6M Bitcoin ETF
Coinbase’s Stock Movement and ARK’s Strategic Investments
While the broader market experienced declines, Coinbase’s stock showed resilience. According to data extracted from Google Finance, the price dropped by 2.04%, closing at $157.28, but the stock rebounded by 2.68% in after-hours trading, reaching $161.5. The performance speaks of Coinbase’s capacity to rebound from market turmoil afflicting industries such as technology and cryptocurrency. Beyond its stake in Coinbase, ARK Invest has remained active in various sectors.
Last week, the firm’s flagship ETF, the ARK Innovation ETF (ARKK), purchased $8.8 million worth of Coinbase shares worth 54,988 shares. ARKW and ARKF also added smaller shares across other companies. Further, ARK sold 19,903 shares of Prime Medicine, totaling approximately $35,626. These changes show how ARK intends to take advantage of opportunities in high-growth sectors despite short-term turbulence in the market.
Strategic Focus on Innovation
The actions taken by ARK Invest clearly illustrate that its strategy is geared towards innovation and disruptive technology. While many investors are hesitant in their investments, ARK’s decision to increase its positions in Coinbase and other tech-driven companies indicates a strategic view of the market with a long-term perspective. Even during periods of market stress, Cathie Wood’s firm remains focused on backing the future of disruptive technologies.
