Ark Invest Adds Coinbase Stock as Crypto Exchange's Price Slides
TL;DR Ark Investment Management bought 78,982 shares in cryptocurrency exchange Coinbase (COIN) for about $3 million. This purchase increases the ARK Innovation ETF's (ARKK) holding to 5.7 million COIN shares and suggests that Ark still sees bullish signs for the crypto sector, though may be opting for a cautious approach while the dust settles on a rocky period.
Cathie Wood's Ark Investment Management said in an e-mail it bought 78,982 shares in cryptocurrency exchange Coinbase (COIN), its first investment in the crypto exchange in a month.
At Friday's closing price of $40.24 , the purchase would have cost about $3 million. The stock has been in a funk in recent months, and is down almost 60% from $98 in early August.
The purchase takes the ARK Innovation ETF's (ARKK) holding to 5.7 million COIN shares. That puts the purchase on the small side – increasing the ETF's exposure by 1.4%. It suggests the investment firm still sees bullish signs for the crypto sector, though may be opting for a cautious approach while the dust settles on a rocky period.
Coinbase CEO Brian Armstrong said last week the company's revenue this year would be at least 50% less than it was last year owing to the steep price drops in cryptocurrency prices and knock-on effects across the sector from multiple bankruptcies of large firms, such as rival exchange FTX.