By
Mayowa Adebajo
April 19th, 2024
Ark Invest resumed its Coinbase shares acquisition in October when it added 10,880 shares, pushing the valuation of its then-total holdings to $60.5 million.
Again, Florida-based investment management firm Ark Invest has purchased shares of popular cryptocurrency exchange Coinbase (NASDAQ: COIN). The recent purchase was the company’s first investment in the cryptocurrency exchange in December. According to the e-mail by Ark Investment, the firm purchased a total of 78,982 COIN shares for approximately $3 million. The renowned Coinbase shares purchaser recently resumed its acquisition after taking a break since June. Notably, the company took time off due to the US SEC probe.
Ark Invest resumed its Coinbase shares acquisition in October when it added 10,880 shares, pushing the valuation of its then-total holdings to $60.5 million. Last month, the company performed two separate share purchases in Coinbase. It purchased a total of 420,949 COIN shares in the first batch for around $21 million. A few days later, the firm purchased 237,675 COIN shares. According to the company, most of the purchases were made in the name of ARK’s Innovation ETF, while a few other purchases were made with its Next Generation Internet ETF and the Fintech Innovation ETF.
Ark Invest Continues Purchasing Coinbase Shares, Optimistic of the Crypto Sector
This December purchase pushes Ark Innovation ETF’s total holdings of COIN shares to 5.7 million COIN shares. The continual investment indicates that the company is optimistic about a bullish run in the crypto sector. Nevertheless, there is no clear signal of a bullish season. The entire crypto market has continued to plummet with token crashes and investment losses.
Earlier this week, analysts predicted that Coinbase’s annual revenue would reduce to $3.3 billion in 2022. The CEO of Coinbase, Brian Armstrong, said during an interview:
“Last year in 2021 we did about $7 billion of revenue and about $4 billion of positive EBITDA, and this year with everything coming down it’s looking, you know, about roughly half that or less.”
This confirms that Coinbase revenue will reduce by over 50% this year. According to FactSet, Coinbase generated a total of $7 billion in 2022. The shares’ price has dropped by 88.23% from its all-time high as it currently trades at $40.24 after reaching a high of $98.02 in August. The crash of FTX is one of the factors responsible for the plummeting share price. Against the perspective of top investors that FTX collapsed due to accounting errors, Armstrong tweeted:
“I don’t care how messy your accounting is (or how rich you are) – you’re definitely going to notice if you find an extra $8B to spend. Even the most gullible person should not believe Sam’s claim that this was an accounting error. It’s stolen customer money used in his hedge fund, plain and simple.”
The Ark Invest CEO Cathie Wood has mentioned that she purchased $100,000 worth of BTC in 2015 for $250/BTC. Her investment is currently worth $7.2 million.