Cathie Wood Led Ark Invest Sold 1.41M Shares of Coinbase

Cathie Wood Led Ark Invest Sold 1.41M Shares of Coinbase
  • After starting at $61.74, Coinbase (COIN) ended the day at $52.93.
  • ARK Invest paid an estimated average price of $328.28 a share.

With Coinbase trading at a 52-week low at the price of $52.93, prominent crypto investor Cathie Wood sold 1.41 million shares of Coinbase stock. ARK Invest paid an estimated average price of $328.28 a share for its Coinbase shares, therefore this was a huge loss for the firm.

Loss Better Than Total Wipe Out?

After starting at $61.74, Coinbase (COIN) ended the day at $52.93; this is a drop of 21%. Since its all-time high, it has lost 84% of its value and is presently down 75% for the year. Cathie Wood’s ARK Invest purchased $29 million worth of Coinbase shares in May. Perhaps this abrupt drop in Coinbase’s stock is because of an investigation into whether or not the company enabled its customers to trade digital assets that should have been registered as securities.

Data shows that the Ark Innovation ETF, Ark Fintech Innovation ETF, and Ark Next Generation Internet ETF all purchased a total of 749,205 shares of Coinbase. At the time of acquisition, their position in Coinbase was valued around $246 million based on the stock’s closing price of $328.28.

Ark, which Wood created in 2014, invests in businesses at the forefront of disruptive ideas, and has a small pool of potential investments into which it may channel its capital. After a successful year that saw ETF assets soar to more than $60 billion at one point, worries about concentration concerns have been swirling around the New York-based business in recent months.

In a recent statement, Coinbase said that it has no financial exposure to the recently bankrupted crypto companies, such as Celsius Network, Voyager Digital, or Three Arrows Capital.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.