Ark Invest Sells Significant Portion of Coinbase Holdings Amidst Stock Surge
Ark Invest, led by Cathie Wood, has sold a substantial amount of its holdings in Coinbase Global Inc. (COIN) as the value of the crypto exchange’s stock reaches a 20-month high. This move is part of a broader portfolio reshuffling in response to recent market dynamics.
Sale Details and Trend
On December 13, Ark Invest sold 283,104 shares of Coinbase across two of its funds, totaling approximately $42.6 million. This sale is part of a larger trend with the firm’s weekly sales reaching $56 million. The Innovation ETF sold 239,237 shares ($36 million), while the Next Generation Internet ETF sold 43,867 shares ($6.6 million). Previously, COIN shares worth $13.4 million were sold on December 11 and 12, and a $100 million sale occurred last week.
Coinbase Stock Performance
Coinbase’s stock closed at $150.46 on December 13, marking a 7.8% increase for the day and a 64% surge over the past month. However, it remains approximately 60% below its all-time high of $343 reached in November 2021.
Ark Invest’s Other Sales
In addition to Coinbase, Ark Invest also sold 45,864 shares of the Grayscale Bitcoin Trust (GBTC) valued at around $1.6 million on Wednesday. This decision aligns with the reduction in GBTC’s discount to net asset value (NAV), which decreased from over 40% to just 7.4% recently.
Understanding Discount to Net Asset Value (NAV)
The discount to net asset value (NAV) refers to the difference between the market price of each share and the actual value of the Bitcoin it represents. This reduction in the GBTC discount is the smallest margin in approximately two and a half years.
Hot Take: Ark Invest Continues Portfolio Adjustments Amidst Coinbase Stock Surge
Ark Invest, led by Cathie Wood, has sold a significant portion of its Coinbase holdings as the crypto exchange’s stock value reaches a 20-month high. This move is part of a broader portfolio reshuffling in response to recent market dynamics. Despite Coinbase’s stock surge over the past month, it remains significantly below its all-time high. In addition to selling Coinbase shares, Ark Invest has also offloaded shares of the Grayscale Bitcoin Trust, coinciding with a notable reduction in its discount to net asset value (NAV). These actions highlight Ark Invest’s proactive approach to managing their crypto investments.
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