ARK Invest Sells Coinbase Stock Ahead of Impressive Earnings
ARK Invest, the asset management firm led by Bitcoin bull Cathie Wood, has sold $34.3 million worth of Coinbase stock ahead of the crypto exchange’s impressive earnings report. This marks the first time since January 11 that ARK Invest has unloaded some of its Coinbase shares.
According to a Thursday filing, ARK Invest sold the shares from three of its funds: ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW). The sale came just before Coinbase’s stock price jumped by 11% in after-hours trading following the earnings report.
ARK Invest: Second Biggest Holder of Coinbase Stock
As the second biggest holder of Coinbase stock, ARK Invest previously sold $25.3 million worth of shares in January. The firm focuses on investing in tech stocks and companies related to AI and crypto, and the filing also revealed that three of its funds bought more Tesla stock.
Tesla, one of the largest public holders of Bitcoin, is known for its involvement in the crypto space. Meanwhile, Coinbase reported a profit of $273.4 million in its 2023 fourth quarter earnings, compared to a loss of $557 million during the same period last year.
Coinbase’s Turnaround: Crypto Prices and USDC Interest
The San Francisco-based exchange attributed its return to profitability to a surge in crypto prices and increased interest in its USD Coin (USDC) product. Users can earn rewards by holding the stablecoin on the exchange.
Hot Take: ARK Invest Cashes Out Before Coinbase Soars
ARK Invest’s decision to sell Coinbase stock ahead of the exchange’s impressive earnings report proved to be a smart move, as the stock price rose by 11% in after-hours trading. As the second biggest holder of Coinbase stock, ARK Invest continues to make strategic investment decisions in the crypto and tech space. Meanwhile, Coinbase’s strong earnings performance was driven by the surge in crypto prices and the growing popularity of its USD Coin product. This turnaround further solidifies Coinbase’s position as a leading player in the crypto industry.
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