Ark Invest Resumes Coinbase Stock Acquisitions, Buys $5.4M Worth of Shares

Cathie Wood's Ark Invest has resumed buying Coinbase stock (COIN) after selling for a significant period. On August 5, 2024, the investment firm purchased 28,632 Coinbase shares for $5.4 million.

Cathie Wood's Ark Invest resumes Coinbase share sales, offloads $2.7 million worth of COIN https://t.co/lOXv2i7Gpj

- The Block (@TheBlock__) August 1, 2024

According to TradingView data, COIN closed at $189.5 on August 6 following this purchase. This is more significant considering Ark Invest made this move amid a major market dip, with Bitcoin plunging below $50,000.

Cathie Wood and Ark Invest's trade activity from today 8/5 pic.twitter.com/NEWHxcOLjJ

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

ARK Buys Coinbase Shares When Bitcoin Declined by 20%

ARK Invest's latest purchase came amid a massive decline in the cryptocurrency markets, a plunge caused by significant volatility in the traditional equity markets. Therefore, this move signifies a return to buying after an extensive dump in 2024.

Coingecko data shows Bitcoin's price crashed by 20%, briefly plunging below $50,000 from $63,000 to $49,800, a level last seen in February. However, it later rallied back to $55,000.

Bitcoin's price has touched $55,661, a 5% gain in the last 24 hours. However, Coingecko data shows the price is still 16% down over the past seven days.

Since Coinbase is a major cryptocurrency exchange, its stock (COIN) value is closely tied to Bitcoin's price. Hence, its financial performance depends significantly on the cryptocurrency market.

A rise in Bitcoin's price causes more significant trading volumes, which translates to better revenues for Coinbase. COIN will experience similar gains in its stock price.

This explains why Coinbase's stock rallied, reaching about 110%, while Bitcoin increased by 93% in over 12 months, as seen in Tradingview data.

This shows that investor confidence in Coinbase's stock increased as Bitcoin rose, causing its price to rise. Coinbase shares also plunged on August 5 when Bitcoin plunged. The stock price dropped to $173 per stock, representing a 20.7% decline in price.

However, it rallied briefly before closing at $189.5 on Monday, signifying it was still 7% down. ARK could leverage the buy-the-dip opportunity amid current market crashes to refill its portfolio, anticipating the next rally.

The asset manager leveraged the recent massive market slump to stock up its portfolio with Coinbase and Robinhood (HOOD) shares, which declined 8.17% on Monday.

Ark Invest Sells Off $26 Million Worth of Shares in Jack Dorsey's Block Shares

Aside from buying back Coinbase shares, ARK has increased its trading activity in other cryptocurrency assets. The company is also getting involved in Ether futures-based ETFs.

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

Also, ARK sold off 70,316 ProShares Ether Strategy ETF (EETH) shares for $3.4 million. It continued by dumping shares from its Ether futures ETF stash, the ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ). ARK sold 17,303 of the ARKZ shares for about $470,000.

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

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