Ark Invest Acquires $13.3 Million in Coinbase Shares Amid Market Decline
Cathie Wood's firm Ark Invest purchased 84,514 shares of Coinbase on April 7 for approximately $13.3 million. This acquisition occurred during a significant market downturn.
Key Details
- Previous purchase: 41,032 Coinbase shares for $8.7 million in February, updated to 64,806 shares valued at $10.2 million for ARK Next Generation Internet ETF (ARKW).
- ARK Fintech Innovation ETF (ARKF) acquired 19,708 shares worth around $3.1 million.
- Coinbase shares closed down 2.04% at $157.28 but rose 2.68% in after-hours trading to $161.50.
- On the same day, Ark sold 159,496 shares of its ARK 21Shares Bitcoin ETF (ARKB) for about $12.4 million.
- Coinbase constitutes 5.92% of ARKW and 7.65% of ARKF holdings.
Market Context
- Global markets faced sharp declines; Shanghai Composite Index dropped 7.3%, Nikkei 225 fell 7.8%.
- US indexes: Dow Jones decreased by 0.91%, S&P 500 slipped 0.23%, Nasdaq increased by 0.10%.
- Bitcoin hit lows of $75,053 but rebounded to $80,246, up 3.64% in 24 hours.
Ark Invest's decision reflects a strategy to acquire assets at a discount during periods of market distress.