Cathie Wood’s Ark Invest has been making strategic adjustments to its portfolio. These adjustments come amidst a dynamic market landscape which is in turn characterized by significant surges in the chip and cryptocurrency sectors.

Ark Invest has trimmed its positions in chipmakers Taiwan Semiconductor Manufacturing Company (TSMC) and Nvidia along with cryptocurrency exchange Coinbase and online brokerage Robinhood. The firm sold 2,362 shares of Nvidia while still holding around 221,848 shares of TSMC. 

Additionally, the firm sold a total of 96,435 Coinbase shares worth approximately $16 million across three ETFs in the past week. These decisions as outlined in recent trade filings are part of Ark Invest’s ongoing portfolio rebalancing strategy.

The rationale behind these adjustments is clear which is to optimize holdings in light of substantial price increases experienced by the aforementioned companies. Nvidia’s stock price for instance has skyrocketed 59% year-to-date while TSMC’s has climbed 25%. Similarly, Coinbase’s share price has witnessed a 30% surge surpassing $165 per share in the past month though it remains below its all-time high.

Ark Invest has also made strategic acquisitions to diversify its portfolio and capitalize on emerging opportunities. These purchases include shares in Roku which is a leading streaming platform provider, Veracyte which is a precision oncology company and also 10x Genomics which is a company pioneering single-cell analysis technologies. Additionally, Ark Invest has invested in Twist Bioscience, 908 Devices, Intellia Therapeutics, and Mass devices all contributing to a diversified portfolio encompassing various innovative sectors.

While the specific reasons behind Ark Invest’s decisions remain undisclosed, the adjustments likely reflect a calculated approach to managing risk and capturing potential opportunities in a rapidly changing market environment. In December, ARK Invest’s Next Generation Internet ETF (ARKW) sold 809,441 shares of GBTC for approximately $28 million. 

Cathie Wood’s Ark Invest had changed its investment strategy by selling over $45 million in Grayscale Bitcoin Trust shares and more than $150 million in Coinbase shares. As of that time, the company had completely divested its GBTC holdings.