ARK acquires $12.1M in Coinbase shares despite volatile markets

After Coinbase said it had “limited exposure” to the problematic trading platform FTX, Ark Investments increased its holdings in the company.

In the midst of the FTX and crypto market volatility, Cathie Wood’s Ark Investments acquired 237,675 Coinbase shares valued at around $12.1 million on November 9.

Ark Investment Management bought 237,675 Coinbase shares, allocating 207,527 to the ARK Innovation ETF, 22,416 to the ARK Next Generation Internet ETF, and 7,732 to the ARK Fintech Innovation ETF.

Wood’s purchase on November 9 followed a 10.84% decline in Coinbase’s share price on November 8, which was an anticipated consequence of the FTX scandal, according to Owen Lau, a stock analyst at investment banking company Oppenheimer:

“The impact on crypto prices is expected to weigh on COIN even if COIN has low exposure to FTX until there is sufficient proof that the contagion risk has been addressed.”

It was also the investment firm’s first move for Coinbase since July 26, 2022, when it sold approximately 1.4 million of its shares worth $75 million across ARKK, ARKF, and ARKW.

In reaction to the U.S. Securities and Exchange Commission’s (SEC) investigation into charges that Coinbase engaged in insider trading of unregistered securities, there was a significant decline in the company’s share price.

According to statistics from Cathie’s Ark, Wood’s most recent purchasing binge has pushed the firm’s Coinbase share count back up to 7.625 million, which is around one million shares fewer than its all-time high of 8.675 million sets on July 20, 2022.

Coinbase currently has the eleventh biggest stake in Ark’s primary investment fund, ARKK, which accounts for 3.79 percent of the portfolio. According to Yahoo Finance, Coinbase’s shares rose 10.74% on Thursday, boosting its share price to $50.92.

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