Cathie Wood’s Ark Invest Buys Additional $21.4M Worth of Coinbase Stock

UTC by Tolu Ajiboye · 3 min read
Cathie Wood’s Ark Invest Buys Additional $21.4M Worth of Coinbase Stock
Photo: Depositphotos

Following its purchase of Coinbase stock at the end of October, Ark Invest has added an additional 420,949 units of COIN.

Ark Invest recently purchased 420,949 more units of Coinbase stock (NASDAQ: COIN) worth approximately $21.4 million, according to reports. The investment firm, run by seasoned Bitcoin (BTC) investor Cathie Wood, capitalized on the dip to make another large stock purchase.

Ark Invest put around 330,000 shares into its flagship ARKK exchange-traded fund (ETF). ARKK invests in companies that target disruptive innovation.

Regarding the disbursement of purchased shares, reports further state that Ark Next Generation Internet ETF (ARKW) received 54,466 shares. Another ETF, the ARK Fintech Innovation ETF (ARKF), took custody of 36,022 Coinbase shares.

The latest investment by Ark in Coinbase follows a similar purchase made by the firm at the end of October. Two weeks ago, the Florida-based investment management firm acquired 10,880 COIN for ARK Fintech Innovation ETF. In addition to making its first purchase of Coinbase stock since June this year, Ark also further bought into Block (NYSE: SQ) and Robinhood (NASDAQ: HOOD).

Following Ark Invest’s purchase, Coinbase was trading at $50.83 at the end of Tuesday, and 10.78% lower over the day. Shares of the prominent American crypto exchange are down approximately 80% since the beginning of the year. The magnitude of this drawdown even surpasses that of Bitcoin, which has been trading 74% lower year-to-date.

Ark Invest Coinbase Stock Purchase Comes amid Other Key Developing News in Crypto Sector

The Ark purchase also comes as Coinbase CEO Brian Armstrong addresses concerns about his firm’s stability. According to Armstrong, Coinbase does not have “any material exposure” to Bahamian-based exchange FTX or Alameda Research. Both platforms are owned and operated by American entrepreneur and investor Sam Bankman-Fried, who recently announced a preliminary sale agreement between Binance and FTX.

In last week’s shareholder letter, Coinbase reported that it realized $576 million in net revenue during the third quarter. This revenue haul marks a 28% decline from the $803 million that the Brian Armstrong-led exchange made in the second quarter. Furthermore, Q3’s lower net revenue came amid a steep bear market-triggered decline in trading volume. For the third quarter, Coinbase reported $159 billion in trading volume compared with Q2’s $217 billion. Furthermore, the company also disclosed that transaction revenue plunged 44% in the period ended September 30th. However, it was not all doom and gloom for Coinbase in the third quarter. According to the leading crypto exchange, it saw its total assets value climb 4% to $101 billion from $96 billion.

More on Binance-FTX Development

It was recently announced that Binance would acquire FTX, although financial details surrounding the deal remain unclear. Commenting on the looming acquisition, Binance CEO Changpeng Zhao stated:

“This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.”

Furthermore, reports state that the deal will not involve the US arms of both Binance and FTX.

Blockchain News, Business News, Cryptocurrency news, Market News, News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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