Cathie Wood's Ark Invest Offloads Massive GBTC and Coinbase Shares, Eyes AI Push

Cathie Wood’s Ark Invest Offloads Massive GBTC and Coinbase Shares, Eyes AI Push

UTC by Bhushan Akolkar · 3 min read
Cathie Wood’s Ark Invest Offloads Massive GBTC and Coinbase Shares, Eyes AI Push
Photo: World Economic Forum / Flickr

While Cathie Wood has been aggressively selling off her investments in crypto firms, she’s making fresh bets in the AI space acquiring shares of top tech companies like Microsoft and Meta.

Cathie Wood’s Ark Invest has been doing massive capital rotation by offloading its crypto investments and eyeing a push into AI. Ark Invest executed its most substantial sale in over a year by divesting approximately $12.85 million in Grayscale Bitcoin Trust (GBTC) shares from its Next Generation Internet (ARKW) exchange-traded fund (ETF) on Monday, December 11.

This move resulted in the disposal of 395,945 GBTC shares, reducing ARKW’s GBTC holding to approximately $112.7 million, constituting a 6.95% weighting. ARK Invest maintains a strategy of ensuring that no individual holding within its ETFs exceeds a 10% weighting relative to the fund’s total market value.

Grayscale’s Bitcoin (BTC) investment vehicle – GBTC – experienced an 8.6% decrease, falling to $32.46 on Monday. This mirrored the 5.8% decline in the Bitcoin price amid heavy market selling.

Since the beginning of December, Ark Invest has also been offloading a large portion of its Coinbase Global Inc (NASDAQ: COIN) holding.

On December 11, Ark Invest, led by Cathie Wood, divested 13,634 shares of Coinbase, totaling nearly $2 million. The sales were distributed among different Ark ETFs, with ARK Innovation ETF (ARKK) selling 10,933 COIN shares, ARK Next Generation Internet ETF (ARKW) offloading 2,483 shares, and ARK Fintech Innovation ETF (ARKF) divesting 218 COIN stocks.

Responding to the broader crypto market selloff, Coinbase’s (COIN) stock price declined by 5.87% to $138.02 on Monday. Despite the dip, traders maintained a bullish stance, seizing the opportunity to buy at lower prices near support levels. Earlier, on December 8, Ark Invest had sold 335,860 Coinbase (COIN) shares, amounting to $49 million.

Ark Invest Eyes Opportunity in AI

In another move, Cathie Wood made her first purchase of Microsoft Corp (NASDAQ: MSFT) shares in approximately nine months. The acquisition is part of her strategy to bolster investments in major US technology companies with a focus on artificial intelligence (AI).

Ark Next Generation Internet ETF, known for its outperformance compared to the Nasdaq 100 Index this year, initiated the purchase of 8,810 Microsoft shares on Monday. This marks the first addition of Microsoft stock to the ETF’s portfolio since March 20, as per Ark Investment Management LLC’s daily trading data compiled by Bloomberg.

In a separate transaction, the fund also acquired 10,212 shares of Meta Platforms Inc., the parent company of Facebook, ending a five-month gap since its last purchase of Meta stock. Prior to these latest transactions, Ark Investment already held approximately 51,000 shares of Microsoft and around 285,000 shares of Meta, according to data compiled by Bloomberg.

Cathie Wood’s fresh investments underscore her ongoing confidence in the promising outlook for stocks linked to artificial intelligence. Despite the sector’s elevated valuations, presenting challenges for earnings growth, and global regulatory efforts aimed at overseeing the industry, Wood continues to express optimism in the potential of AI-related equities.

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