ARK Investment Offloads Coinbase (COIN) Shares
Investors are closely monitoring Coinbase’s earning reports as shares of the crypto giant COIN are up more than 214% YTD. The recent boost comes after Coinbase reached a surveillance-sharing agreement with Cboe’s BZX Exchange for its spot Bitcoin ETF applications. Here are the key points:
– ARK Investment, led by Bitcoin bull Cathie Wood, has offloaded $88.5 million worth of COIN shares in the past two weeks.
– Despite optimism from Wood after a court ruling against the SEC and in favor of Ripple’s XRP, ARK Invest decided to profit from the recent stock upsurge.
– On July 11, the investment firm sold off $12 million worth of COIN shares, followed by a sale of $50.5 million worth of shares on July 14th across three different funds.
– Coinbase reported a net loss of $79 million in Q1 this year, down from $430 million in the same period last year. The company sees this as a “turning point” in building a more efficient and financially disciplined organization.
– ARK Investment’s recent sales of COIN shares are unusual, as it had made several buys during the crypto winter. Wood stated that the sales were due to profit-taking and a desire to relocate capital to other assets.
In addition to offloading COIN shares, ARK Invest has also sold Tesla (TSLA) shares and purchased additional shares of Meta Platforms (META) and Robinhood (HOOD).
Hot Take
ARK Investment’s decision to offload COIN shares after a significant stock upsurge indicates a desire to secure profits and reallocate capital. While Cathie Wood remains optimistic about Coinbase, the recent sales suggest a shift in investment strategy. This move highlights the volatility and ever-changing nature of the cryptocurrency market, where investors must adapt and capitalize on opportunities.
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