Large Investment Firm Bets Big on Coinbase
Ark Invest capitalizes on Coinbase's dip amid SEC lawsuit, buying $21.64M in shares.
Cathie Wood's Ark Invest capitalized on the recent dip in Coinbase's stock, triggered by a lawsuit from the United States Securities and Exchange Commission (SEC). Ark's ETFs collectively acquired shares worth $21.64 million as the stock plunged.
Ark's flagship Ark Innovation ETF, Ark Next Generation Internet ETF, and Ark Fintech Innovation ETF bought a total of 419,324 Coinbase shares. This investment was made as Coinbase's stock experienced a decline of up to 21%, finally closing 12% lower due to the SEC's lawsuit. The SEC's allegations that Coinbase breached regulations by permitting the trade of unregistered tokens spurred the drop. Coinbase, in response, has pledged to take the fight to the Supreme Court.
Despite the turbulence, Ark continues to show confidence in Coinbase, making it the fifth-largest holding across its funds. Ark's funds hold nearly $650 million in Coinbase stock, with the average cost per share ranging between $239 and $255.
