Cathie Wood’s ARK adds $12.1M in Coinbase shares amid turbulent markets

Ark Investments topped up its Coinbase stock shortly when FTX’s liquidity problems were discovered, which came when Coinbase stated that it had “minimal exposure” to the troubled mercantilism platform.

Amid the FTX and crypto market chaos, Cathie Wood-led Ark Investments has inflated its Coinbase (COIN) holdings with a sale of 237,675 COIN shares price concerning $12.1 million on Nov. 9.

Of the 237,675 COIN shares, Ark Investment Management supplemental 207,527 shares to its ARK Innovation ETF (ARKK), 22,416 shares to its ARK Next Generation net ETF (ARKW), and another 7,732 shares to its ARK Fintech Innovation ETF (ARKF).

The tech-focused investment firm’s purchase came when Coinbase stated in response to FTX’s economic condition that it’s “minimal exposure” to the currently cash-strapped cryptocurrency mercantilism platform with solely $15 million on deposit to “facilitate business operations and client trades.”

Coinbase conjointly supplemental that it’s no exposure to FTX’s native token FTT tickers down $3.31— that has fallen 84.08% since Binance declared its call to liquidate its entire FTT holdings late on Nov. 7— and its partner mercantilism firm Alameda analysis.

Wood’s Nov. 9 purchase came following a 19.84% fall in COIN’s share worth on Nov. 8, that was Associate in Nursing expected result follow on from the FTX contestation, in line with Owen Lau, a stock analyst at investment banking firm Oppenheimer:

“While COIN has nominal exposure to FTX, before there’s enough proof that the contagion risk is contained, the pressure on crypto costs can doubtless sadden COIN.”

It was conjointly the investment firm’s initial trade for Coinbase since it sold off over one.4 million COIN shares — that were then priced at $75 million — across ARKK, ARKF and ARKW on Jul. 26. 2022.

The large sell-off came in response to the U.S. Securities Exchange Commission (SEC) conducting an investigation into allegations of Coinbase participating within the trading of unregistered securities.

However, Wood’s latest shopping spree has brought the firm’s COIN shares tally keep a copy to 7.625 million, that is concerning 1,000,000 shares but its peak of 8.675 million recorded on Jul. 20. 2022, in line with knowledge from Cathie’s Ark.

Coinbase currently has the eleventh largest holdings in Ark’s main investment fund ARKK, which currently represents 3.79% of the portfolio. COIN’s stock went up 10.74% on Thursday, increasing its share worth to $50.92, in line with Yahoo Finance.

On Nov. 10, Coinbase aforementioned it had been eliminating sixty positions at the firm.

“Today’s actions were surgical. we tend to be simply ensuring we don’t seem to be wasting a dollar,” mentioned Coinbase CFOAlesia Haas, in line with a Nov. ten report from Bloomberg.

“If we tend to see that there’s additional depressed revenue, and if we tend to believe this is often attending to impact on the far side the situations we’ve already planned for, we ought to take additional cost-saving action.”

Update Nov. 11, 3:55 am UTC: supplemental reports that Coinbase can cut sixty positions at the firm.