Ark Invest Increases Coinbase Holdings

Ark Invest purchased another 19,892 Coinbase shares worth $3.9 million across three of its ETFs on Tuesday, continuing to rebalance after Monday’s market drop.

The firm, led by Cathie Wood, bought:
– 13,833 shares ($2.7 million) for its Innovation ETF (ARKK)
– 2,743 shares ($533,000) for its Next Generation Internet ETF (ARKW)
– 3,316 shares ($644,000) for its Fintech Innovation ETF (ARKF)

These latest acquisitions followed a $17.8 million purchase on Monday, the first since buying $21 million worth of COIN in June 2023. Ark sold off COIN multiple times as the stock surged over 250% during that period.

Ark’s strategy limits individual holdings to no more than 10% of an ETF’s portfolio, encouraging diversification. Thus, Ark may continue to adjust its COIN allocations based on stock performance relative to other holdings.

As per disclosures, COIN is now:
– The third-largest holding in the ARKK ETF at 8.7% ($445.3 million)
– The fourth-largest in the ARKW fund at 6.8% ($84.4 million)
– The largest in the ARKF fund at 9.8% ($75.1 million)

Coinbase Share Price Recovery

Coinbase shares rose 2.5% on Tuesday to $194.17, recovering from a 15% drop on Monday amid concerns of a U.S. recession and geopolitical tensions. The stock is up 123% over the past year but is down 5% this week and 43% below its all-time high of $342.98 from November 2021.

As of August 6, Coinbase’s valuation stands at $36.1 billion, based on The Block’s data dashboard.

Ark Invest’s Other Transactions

On the same day, Ark invested in 121,979 shares of Robinhood worth $2.1 million, as HOOD increased by 4.8%. This followed an investment of $11.2 million in Robinhood stock on Monday, ahead of the company’s Q2 financial results announcement.

Conversely, Ark sold 286,425 shares of Block for $16.4 million on Tuesday, following a $26 million sale of Block shares on Monday, as the stock remained unchanged.