Cathie Wood Continues to Buy Coinbase’s Decline with a $5 Million Stock Acquisition
ARK’s Fintech Innovation ETF increases its COIN holdings by 158,000 shares as the price reaches an all-time low.
Cathie Wood’s technology and fintech firm, ARK Invest, has acquired $5 million worth of Coinbase shares. This is the fourth recent purchase for the investment fund, as the ARK Fintech Innovation ETF (ARKF) increases its holdings by 158,000 shares. Mid-December marked Wood’s most recent acquisition when it added $3.2 million in exchange shares to its balance sheet.
Thursday in New York, Coinbase shares finished at $34.78 per share, a nearly 7% increase. The exchange’s shares have been severely impacted by the crypto bear market this year, dropping 86%. COIN has underperformed both bitcoin and ether, with the biggest digital asset in the world declining by 65% year-to-date and the namesake token of the Ethereum system down by 66%.
Wood proceeded to show her bitcoin commitment by acquiring 176,945 shares ($1.5 million) of Grayscale’s Bitcoin Trust in late November. GBTC shares are now selling at a 48% discount to bitcoin’s net asset value. Grayscale is owned by Digital Currency Group, the parent firm of CoinDesk.
A transaction report email dated December 30 reveals that Wood acquired 22,514 shares of Tesla (TSLA) stock for ARK’s Innovation ETF (ARKK) in the amount of about $2.74 million. Investors are concerned that rising inflation and a future recession would diminish demand for costly electric cars, causing TSLA to decline by almost 69% this year.