Ark Invest Adjusts Portfolio Ahead of Coinbase Earnings
Ark Invest, led by Cathie Wood, made significant changes to its portfolio by selling millions of dollars worth of Coinbase shares. This move was made in anticipation of the upcoming Q4 earnings report.
On February 14, Ark Invest sold a total of 214,068 Coinbase shares valued at $5 million. The decision was influenced by an 18% increase in the price of COIN as Bitcoin surged past $52K and the growing inflows in spot Bitcoin ETFs.
The specific breakdown of the share sales includes 152,600 COIN shares sold by ARK Innovation ETF (ARKK), 31,459 COIN shares sold by ARK Next Generation Internet ETF (ARKW), and 30,009 COIN shares sold by Ark Fintech Innovation ETF (ARKF).
Coinbase Stock Performance
Following the sale, Coinbase’s stock price closed 14.24% higher at $160.38 on Wednesday. After hours trading saw a further increase of 4.09%, with the stock reaching $166.94 as Bitcoin exceeded the $52K mark.
Speculation Surrounding Coinbase Earnings
The decision to sell Coinbase shares ahead of the earnings report has raised concerns among investors. While some experts anticipate disappointing earnings, others expect a surprise outcome due to the growing cryptocurrency market cap and trading activity. Coinbase is expected to report an EPS of $0.27 and revenue of $820.28 million.
Changes in Ark Invest’s Holdings
In addition to selling Coinbase shares, Ark Invest also made other adjustments to its portfolio. On February 13, the firm purchased 42,129 shares of Robinhood Markets after the company reported better-than-expected earnings. However, it sold 119,394 HOOD shares as the price dropped nearly 13% on February 14.
Ark Invest also bought 145,455 Tesla shares worth $27.45 million and acquired 7,796 META shares. On the other hand, Cathie Wood decided to sell 10,601 shares of NVIDIA Corp in exchange for 32,629 Qualcomm shares.
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