Cathie Wood’s Ark Invest, an investment management firm, sold 478,356 shares of Coinbase, the popular crypto exchange, on Friday. This move comes as the stock prices of Coinbase reached a 52-week high. Interestingly, this is the second time within a week that Ark Invest has sold off Coinbase shares. Just a few days earlier, on July 11, the firm sold 135,152 shares worth $12 million from the Ark Innovation ETF. Then, on July 14, they sold the aforementioned 478,356 shares, taking advantage of the stock’s yearly high price of $114.43. The total value of these sales amounted to $53 million, based on the closing price of Coinbase at around $110 on Friday.
Ark Invest’s Stake in Coinbase
Despite the recent sell-off, Ark Invest still holds the second-largest ownership of Coinbase shares, with a stake of 6.30%. This indicates that they still have a significant interest in the company, despite divesting a portion of their holdings. It is worth noting that Cathie Wood and her team at Ark Invest have been actively managing their portfolio, making strategic moves based on market conditions and opportunities.
Ark Invest’s New Investments: Meta Platforms and Robinhood
In addition to selling Coinbase shares, Ark Invest has recently made notable purchases in other companies. They have shown interest in Meta Platforms, the company behind Facebook, and have been accumulating shares since the launch of Threads, a microblogging platform that aims to rival Elon Musk’s Twitter. On Friday, the ARK Innovation ETF purchased 69,793 Meta shares worth over $21 million. Furthermore, the ARK Fintech Innovation ETF acquired 111,843 shares of Robinhood, the popular trading platform, valued at $1.3 million. The Ark Next Generation Internet ETF also increased its holdings with 12,559 Meta shares and 169,116 Robinhood shares. In total, Ark Invest invested $24 million in Meta shares and $3.3 million in Robinhood shares.
Coinbase and Ripple Court Ruling
The stock prices of Coinbase experienced a surge following a recent court ruling in favor of Ripple, a cryptocurrency company. Judge Torres ruled that selling XRP, one of Ripple’s cryptocurrencies, on exchanges does not constitute an investment contract. This favorable ruling has given Coinbase hope that they will also emerge victorious in their legal battle against the US Securities and Exchange Commission (SEC). Consequently, the crypto market rallied, with the price of XRP increasing by nearly 70%. As the largest US-based exchange, Coinbase also observed a noticeable surge in its stock prices. Since the court’s ruling, COIN, Coinbase’s ticker symbol, has increased by almost 25% and closed at $105 on Friday. It is also worth mentioning that COIN has seen a year-to-date increase of 213%. Prior to the Ripple lawsuit ruling, Coinbase shares were already performing well due to their involvement as a surveillance-sharing partner for various spot bitcoin ETF applicants in the United States, including industry giants such as BlackRock and Fidelity.