Cathie Wood’s Ark Invest has made significant changes to its portfolio by divesting shares in major cryptocurrency exchanges. The firm sold off a large stake in Coinbase Global Inc and Robinhood Markets Inc this week, indicating a shift in its investment strategy amidst the rally in the digital asset market.
Ark Invest’s Sell-Off of Coinbase Shares:
– On February 26, Ark Invest began selling off its Coinbase shares, disposing of 35,509 shares valued at $6.9 million. Despite the surge in Coinbase stock that day, closing at $193.94 with a 16.85% gain, Ark Invest remained steadfast in its decision.
– The selling continued on February 27, as the firm sold 46,531 Coinbase shares worth $9.3 million. The stock closed 2.7% higher at $199.22.
– On February 28, Ark Invest dumped 86,298 Coinbase shares worth $17.32 million, while the stock closed at $200.80 with a gain of 0.79%.
– On February 29, the organization divested 9,843 Coinbase shares worth $1.94 million as the stock gained 1.37% and closed at $203.56.
– The week concluded with Ark Invest offloading 38,854 Coinbase shares on March 1, valued nearly at $8 million, with the stock closing at $205.77 and an increase of 1.09%. In total, Ark Invest sold 216,035 COIN shares worth about $43.4 million.
Ark Invest’s Divestment of Robinhood Shares:
– Alongside Coinbase, Ark Invest also divested a significant portion of its Robinhood shares throughout the week.
– On February 26, the firm sold 444,853 Robinhood shares totaling nearly $6.9 million. The stock closed 7.7% higher at $15.59.
– Despite the positive performance, Ark Invest continued to reduce its exposure to Robinhood, selling 95,808 shares on February 27 worth around $1.55 million. The stock closed at $16.25, up by 4.23%.
– On February 29, the organization dumped 7,958 Robinhood shares worth $129,800. The HOOD stock closed at $16.31, up by 1.11%.
– In total, Ark Invest divested a total of 548,619 Robinhood shares throughout the week, amounting to approximately $8.6 million.
Assessing Ark Invest’s Investment Thesis:
– Ark Invest’s decision to offload significant portions of its Coinbase and Robinhood holdings raises questions about its outlook on these companies amidst market volatility.
– Despite Coinbase’s favorable positioning in the cryptocurrency market and Robinhood’s innovative approach to democratizing finance, Ark Invest appears to be reassessing its investment thesis.
– This strategic shift may reflect Cathie Wood and her team’s commitment to enhancing their investment strategy amid evolving trends in the market.
Hot Take:
Ark Invest’s recent sell-off of Coinbase and Robinhood shares indicates a reevaluation of its investment strategy in the cryptocurrency sector. While both companies have seen success in their respective fields, Ark Invest may be adjusting its portfolio to adapt to changing market dynamics. This move highlights Cathie Wood’s proactive approach to optimizing her firm’s investments and staying ahead of evolving trends in the crypto industry.
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