ARK Invest, the investment management firm founded by legendary investor Cathie Wood, recently purchased shares of Coinbase, a cryptocurrency exchange, on International Workers’ Day. The company bought 129,604 shares of Coinbase for its ARK Innovation exchange-traded fund (ARKK), 23,456 shares for the ARK Next Generation Internet ETF (ARKW), and 15,809 shares for the Fintech Innovation ETF (ARKF). In total, ARK purchased 168,869 Coinbase shares, worth roughly $8.5 million.
This acquisition represents nearly 50% of the total Coinbase shares ARK bought last month. In April, ARK purchased a total of 304,300 COIN shares, worth $17.5 million. Previously, in March, ARK bought 2.4 million COIN shares for approximately $117 million.
However, the latest COIN purchases by ARK come amid a decline in the Coinbase stock, which has lost over 20% of its value in the past month, dropping from a high of nearly $72 in April to $50.1 on May 3, according to data from TradingView.
The sharp decline in COIN’s stock price is due in part to the ongoing action against Coinbase by the United States Securities and Exchange Commission (SEC). In March, the securities regulator sent Coinbase a Wells notice, suggesting enforcement action against the exchange. In response, Coinbase filed an action against the SEC on April 25, requesting that the regulator answer 50 questions concerning the regulatory treatment of certain digital assets.
Additionally, on May 3, COIN lost 6.8% of its value amid the exchange facing a new class-action lawsuit alleging that the exchange violated privacy laws.
Despite these challenges, Cathie Wood remains bullish on Coinbase and continues to buy its shares. Wood is known for her bullishness on technology and innovation, and her investment strategies have often been ahead of the curve. In particular, Wood has been a vocal proponent of blockchain technology and cryptocurrencies, which have gained mainstream acceptance in recent years. She believes that blockchain will transform a variety of industries, including finance, health care, and energy, and that cryptocurrencies like Bitcoin and Ethereum will become an increasingly important asset class in the coming years.
Wood’s investment strategies have been highly successful in recent years, and her funds have returned exceptional profits to investors. In fact, ARK Invest has become one of the fastest-growing investment firms in recent years, with assets under management growing from $3.5 billion in January 2020 to over $52 billion today.
ARK Invest’s recent purchases of Coinbase shares are a testament to Cathie Wood’s vision for the future of the cryptocurrency industry. Despite the current challenges facing Coinbase, Wood remains confident in the long-term potential of the company and its ability to transform the financial industry. With her track record of success in investing in innovative technologies, it is likely that many investors will follow her lead and continue to invest in Coinbase and other cryptocurrencies in the years to come.
In conclusion, ARK Invest’s recent purchases of Coinbase shares represent a bold bet on the future of the cryptocurrency industry. Despite the challenges facing Coinbase in the short term, Cathie Wood and her team remain confident in the long-term potential of the company and its ability to transform the financial industry. As more investors begin to embrace cryptocurrencies as a legitimate asset class, it is likely that Coinbase and other crypto companies will become increasingly valuable and important. Although there are risks involved with investing in cryptocurrencies, the potential rewards can be substantial, and investors like Cathie Wood are leading the charge in this exciting and rapidly-evolving industry.
