Key Takeaways:
- Cathie Wood’s ARK Invest repurchased over $17 million of COIN shares.
- The purchase came after the company dumped $13 million worth of shares only 2 days prior.
- The charts show that ARK bought the dip, never intending to depart from Coinbase, despite the SEC’s Wells notice.
YEREVAN (CoinChapter.com) – Cathie Wood, the chief executive of a crypto-friendly portfolio manager ARK Invest, acquired nearly 269,000 Coinbase stock (COIN) shares, worth over $17 million, merely 48 hours after dumping 61,000 shares for $13.5 million.
ARK buys the COIN dip
Notably, ARK Invest dumped the shares before Coinbase received the Wells notice from the Securities and Exchange Commission (SEC), which means a lawsuit against the exchange could be underway. As a result of regulatory issues, the COIN stock faced a selloff wave, and the price declined 16% in two days, standing at $66 per share ahead of the March 24 trading.
According to an email sent out on March 23, over 230,000 of the newly purchased COIN shares went to ARK Innovation ETF (ARKK), while over 38,000 went to the ARK Next Generation Internet ETF (ARKW).
Also read: Why is SEC Suing Coinbase (COIN) But Not Binance?
Cathie Wood never intended to dump Coinbase shares
Meanwhile, the following chart shows that Cathie Wood never intended to minimize ARK’s COIN exposure. On the contrary, the move looks like a decoy to induce a selloff and repurchase the shares at a discount, which the firm did.
As a result, COIN weight in the ARK portfolio nearly tripled year-to-date, going from 2.7% in Jan 2023 to 7.5% on March 24, with a purse of over 10 million shares. Moreover, ARK currently owns 5% of all Coinbase shares, making the latter the fourth largest asset in the investment firm’s portfolio.
Moreover, according to her latest tweet, Wood believes the crypto sector can thrive amid the US banking crisis brought on by the Silicon Valley Bank fiasco.
Why have bitcoin and other crypto assets appreciated during this banking crisis? In our view and in contrast to those in the traditional financial world, many crypto assets face no central points of failure: they are decentralized, transparent, and auditable.
commented the CEO.
