Cathie Wood’s ARK adds $12.1M in Coinbase shares amid turbulent markets


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Amid the FTX and crypto market chaos, Cathie Wooden-led Ark Investments has elevated its Coinbase (COIN) holdings with a purchase of 237,675 COIN shares value about $12.1 million on Nov. 9. 

Of the 237,675 COIN shares, Ark Funding Administration added 207,527 shares to its ARK Innovation ETF (ARKK), 22,416 shares to its ARK Subsequent Era Web ETF (ARKW), and one other 7,732 shares to its ARK Fintech Innovation ETF (ARKF).

The tech-focused funding agency’s buy got here after Coinbase stated in response to FTX’s liquidity crisis that it has “minimal publicity” to the now cash-strapped cryptocurrency buying and selling platform with solely $15 million on deposit to “facilitate enterprise operations and buyer trades.”

Coinbase additionally added that it has no publicity to FTX’s native token FTT — which has fallen 84.08% since Binance announced its decision to liquidate its entire FTT holdings late on Nov. 7 — and its companion buying and selling agency Alameda Analysis.

Wooden’s Nov. 9 buy got here following a ten.84% fall in COIN’s share worth on Nov. 8, which was an anticipated outcome observe on from the FTX controversy, according to Owen Lau, a inventory analyst at funding banking agency Oppenheimer:

“Whereas COIN has minimal publicity to FTX, earlier than there’s sufficient proof that the contagion threat is contained, the stress on crypto costs will doubtless weigh on COIN.”

It was additionally the funding agency’s first commerce for Coinbase because it offered off over 1.4 million COIN shares — which have been then value $75 million — throughout ARKK, ARKF and ARKW on Jul. 26. 2022.

The massive sell-off got here in response to the U.S. Securities Trade Fee (SEC) conducting an investigation into allegations of Coinbase engaging in the insider trading of unregistered securities.

Associated: Breaking: Google taps Coinbase to bring crypto payments to cloud services

Nonetheless, Wooden’s newest shopping for spree has introduced the agency’s COIN shares tally again as much as 7.625 million, which is about a million shares lower than its peak of 8.675 million recorded on Jul. 20. 2022, according to information from Cathie’s Ark.

Coinbase now has the eleventh largest holdings in Ark’s predominant funding fund ARKK, which now represents 3.79% of the portfolio.

COIN’s stock went up 10.74% on Thursday, rising its share worth to $50.92, in line with Yahoo Finance.