Cathie Wood’s ARK Investment Management solidified its position as Coinbase’s fourth-largest shareholder, acquiring $20 million in shares. The company made this decision following regulatory difficulties encountered in the legal battle it has with the Securities and Exchange Commission (SEC).
ARK increased its holdings in Coinbase by 419,324 shares, bringing its total to approximately 10.5 million shares, or roughly $580 million. Before making this most recent acquisition, ARK had 9.99 million shares of Coinbase that were bought in March.
Reports also showed that after the company sold 1 million shares of chipmaker Nvidia just before it soared 160% to a $1 trillion market valuation on an AI-driven boom, some investors began to doubt Wood’s ability to pick best-performing stocks.
Recall that ARK Investment was reported to have purchased over $60 million worth of Bitcoin sometime in November 2022, as well as stocks in major cryptocurrency firms, including FTX, which has long filed for bankruptcy.
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Cathie Wood Investment Choices, Pattern Reviewed
The exchange recorded first-quarter revenue of $1.8 billion, a considerable rise over the prior year. The company has been extending its offers to incorporate fresh cryptocurrencies and products, including its cryptocurrency debit card.
In one of their analyses, Reuters said that ARK’s choice to invest in Coinbase is considered a vote of confidence in the exchange’s prospects. Investigation into the activities of ARK Investment shows the company has been an active player in performance forecasting.
ARK predicted the increase of Bitcoin to over $1 million by 2030, foretelling a situation where more institutions will adopt cryptocurrency. Analysis by Fortune Magazine’s Will Daniel claims that Wood has led by example by buying over 420,000 units of Coinbase shares amid an 11.4% fall in the share value due to the legal battle with the SEC.
In another development, ARK Innovation ETF: an ARK Inc. flagship, has added almost 330,000 units of Coinbase shares, while ARK Fintech Innovation ETF and Next Generation Internet ETF purchased 35,700 units and 53,900 units of Coinbase shares, respectively.
Further investigations into the company’s activities revealed that they had previously bought 350,000 units of shares worth $20 million during one of the stock dips in March 2023. The transaction was made during the collapse of Silvergate Bank when the price of Coinbase stock was down by 8%.
As of press time, Wood’s companies is now in possession of 8.3 million units of Coinbase shares, which is worth approximately $430 million – another principal company: Next Generation Internet ETF, now owns 1.7 million units of Coinbase shares worth over $85 million.
Meanwhile, the latest report also states that Coinbase stocks have recovered, as of today, Wednesday, 11:15 a.m. Eastern Time, and went up by 3% earlier today, the first time since its fallout with the Security and Exchange Commission.