- Ark Invest purchased $6.9 million worth of Coinbase shares across three ETFs.
- The firm reversed earlier February sales made during a crypto equity downturn.
- Coinbase stock has rebounded in the short term but remains sharply below its peak.
Ark Invest has increased its Coinbase exposure, signaling renewed confidence in the crypto exchange’s long-term outlook. The Cathie Wood-led investment firm purchased 41,453 Coinbase shares across three exchange-traded funds on Tuesday, according to its latest trade disclosures. The total buy amounted to approximately $6.9 million.
The firm allocated 29,689 shares, worth approximately $4.9 million, to its ARK Innovation ETF (ARKK). It added 7,525 shares worth $1.2 million to the ARK Next Generation Internet ETF (ARKW) and 4,239 shares valued at $704,000 to the ARK Fintech Innovation ETF (ARKF).
Reversal After Early February Sales
Ark’s latest move marks a clear shift in strategy. Earlier this month, the firm trimmed its Coinbase position. On February 5 and 6, Ark sold a combined 119,236 shares, valued at roughly $17.4 million. The sales came during a broad pullback in crypto-linked equities.
During that period, Ark redirected capital into crypto exchange Bullish. The firm maintained a buying streak in Bullish for more than 10 consecutive trading sessions through mid-February. However, this repositioning indicated that Coinbase should be approached with caution during market volatility.
Ark Investment Management has a strict portfolio management approach that limits any single position to about 10% of the total assets in a fund. This approach causes constant rebalancing based on the fluctuations of stock prices. Currently, Coinbase is the seventh-largest position in ARKK, with a weightage of 4%, valued at approximately 251.5 million dollars. It is also the seventh-largest position in ARKW, with a weightage of 3.7%, valued at 57.4 million dollars, and the third-largest position in ARKF, with a weightage of 5.6%, valued at 44.6 million dollars.
Coinbase Earnings Shape Sentiment
The latest purchase made by Ark Investment Management is in line with the fourth quarter 2025 earnings release of Coinbase. The company has reported a revenue of 1.8 billion dollars, which is a 5% decline from the previous quarter. The company has also reported a net loss of $667 million, which is a result of reporting a profit in the previous quarter.
The losses stemmed largely from $718 million in unrealized losses on its crypto investment portfolio and $395 million in losses tied to strategic investments. Despite the quarterly setback, Coinbase shares have shown resilience.
The stock closed 1% higher on Tuesday at $166.02. It has gained 8.4% over the past five trading days. However, the shares remain down 28% year-to-date and sit 56% below their all-time high.
You can track Coinbase’s live share performance on Yahoo Finance and review broader crypto market trends on CoinDesk Markets.
Analysts Remain Optimistic
Bernstein analysts led by Gautam Chhugani maintained an outperform rating on Coinbase. They also issued a price target of $440, which shows a lot of upside potential from current levels. Their forecast shows that they are confident about the long-term positioning of Coinbase in the digital asset infrastructure space.
The latest accumulation by Ark Investment is also in line with the positive sentiment. Cathie Wood, the founder of Ark Investment, has always been a supporter of high-growth tech and crypto-oriented companies, even during times of market stress.
Coinbase is still experiencing market volatility due to crypto price movements and regulatory changes. But the latest purchase by Ark Investment shows that they are confident about a possible rebound in the digital asset space as markets stabilize.
With the crypto equities space rebounding from the lows, institutional investors seem to be ready to re-enter the market selectively. The latest purchase by Ark Investment also shows that they are confident about the long-term positioning of Coinbase, despite the earnings pressures.
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