ARK Invest Purchases Coinbase Dip as Bitcoin Hits Multi-Month Lows

ARK Invest, led by Cathie Wood, has capitalized on the dip in the stock price of cryptocurrency exchange Coinbase (COIN), purchasing 41,032 shares valued at $9.3 million. This purchase comes just over two months after the firm sold $4.3 million worth of Coinbase stock in late December. The recent buying activity was conducted through the ARK Next Generation Internet ETF, which targets companies tied to the development of the next generation of the internet.

This purchase occurred as Coinbase’s stock struggled, having fallen over 5% following a downgrade from BofA Securities, which reduced its price target for COIN from $363 to $311. The downgrade was attributed to increasing competition and pressure on Coinbase’s transaction revenue, its primary source of income. As of February 25, COIN shares were trading at $212.49, down over 20% for the past week.

The broader crypto market has faced turbulence, with over $1 billion in liquidations within 24 hours, largely triggered by geopolitical tensions, including new tariffs introduced by former President Donald Trump on imports from Canada, Mexico, and China. The news has contributed to fears about inflation and economic uncertainty, causing a decline in Bitcoin and tech stocks.

Bitcoin was trading at around $88,534, marking a 3.5% decline and hitting levels not seen since November 2024. The total market capitalization of cryptocurrencies dropped 3.2% to $3.04 trillion, and the tech-heavy Nasdaq Composite also saw a 1.35% slide.

Despite the volatility, ARK Invest appears to remain optimistic about Coinbase, particularly after the company reported stronger-than-expected Q4 earnings. Coinbase’s earnings represented a 138% year-on-year increase, surpassing analysts’ expectations of $1.88 billion in revenue. Additionally, the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase, which had been one of the SEC’s most significant crypto-related enforcement actions under former chair Gary Gensler.

In addition to purchasing Coinbase shares, ARK Invest also sold 98,060 shares of the ARK 21Shares Bitcoin ETF (ARKB) from its ARKW fund, valued at around $8.6 million.