Ark Invest Resumes Coinbase Acquisitions, Buys $5.4 Million in Shares

Cathie Wood’s Ark Invest resumes buying Coinbase (COIN) shares after selling for a significant period. August 5, 2024, investment company bought 28,632 Coinbase shares for $5.4 million.

Ark Invest Cathie Wood Resumes Coinbase Stock Sale, Offloads $2.7M in COIN https://t.co/lOXv2i7Gpj

— The Block (@TheBlock__) August 1, 2024

According to TradingView data, COIN closed at $189.5 August 6 after that purchase. This is all the more significant because Ark Invest made the move during a major market decline, with Bitcoin falling below $50,000.

Cathie Wood and Ark Invest’s trading activity on 8/5 photo:twitter.com/NEWHxcOLjJ

— Ark Invest Daily (@ArkkDaily) August 6, 2024

ARK buys Coinbase stock as bitcoin falls 20%

ARK Invest’s latest acquisition took place during huge drop in cryptocurrency marketsdecline due to significant volatility in traditional stock markets. Therefore, the move marks a return to buying after a broad decline in 2024.

Coingecko data shows Bitcoin’s price fell 20%, briefly falling below $50,000 from $63,000 to $49,800, a level last seen in February. However, it later rose to $55,000.

Bitcoin’s price has reached $55,661, up 5% in the past 24 hours. However, Coingecko data shows that the price is still 16% down in last seven days.

Since Coinbase is a large cryptocurrency exchange, the value of its shares (COIN) is closely linked to the price of Bitcoin. Hence, its financial results are largely dependent on the cryptocurrency market.

The increase in Bitcoin price causes higher trading volumes, which translates into more revenue for Coinbase. COIN will see similar share price increases.

This explains why Coinbase shares have surged, reaching about 110%, while Bitcoin’s value has increased by 93% in over 12 monthsas seen in Tradingview data.

This shows that investors have confidence in Coinbase shares rose As Bitcoin grew, its price increased. Coinbase shares also fell on August 5 as Bitcoin plummeted. The stock fell to $173 per share, a 20.7% drop in price.

However, the price briefly rebounded on Monday, closing at $189.50, which means it was still 7% down. ARK could seize the opportunity to buy stocks at lows amid the current market downturn and replenish its portfolio in anticipation of another rally.

The asset manager used the last a huge drop in the market to replenish your portfolio with Coinbase and Robinhood (HOOD) shares, the value of which fell by 8.17% on Monday.

Ark Invest Sells $26 Million in Jack Dorsey’s Stake

In addition to buying back Coinbase shares, ARK has been ramping up its trading activity in other crypto assets. The company is also involved in Ether futures-based ETFs.

On August 5, Ark Invest sold 454,775 shares of Block, which at the time of sale cost approximately $26 million. This indicator shows that ARK may adjust its cryptocurrency investments by buying some and selling others to balance its portfolio.

In addition, ARK sold 70,316 shares of ProShares Ether Strategy ETF (EETH) for $3.4 million. It continued to sell shares from its Ether futures ETF, ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ). ARK sold 17,303 shares of ARKZ for approximately $470,000.

After selling Block and several ETH futures funds, ARK added 681,885 shares of crypto-friendly stock trading app Robinhood to its portfolio. It bought HOOD shares for $11.2 million.