Cathie Wood’s Ark Invest buys $11.2 million worth of Coinbase shares

  • Cathie Wood’s Ark Invest scooped up $11.2 million worth of Coinbase shares this week.
  • As crypto turmoil weighs on the exchange, Coinbase shares are trading near all-time lows.
  • Coinbase CEO Brian Armstrong expects the company’s revenue to drop 50% in 2022.

Cathie Wood’s Ark Invest is in full swing, adding a total of 296,578 Coinbase shares to the company’s exchange-traded funds this week. The purchase is valued at around $11.2 million on Friday.

COIN is trading near an all-time low as the company has fallen 84.87% year-to-date. Ark Invest is one of Coinbase’s largest shareholders, according to Bloomberg data, holding a 4.3% stake as of September 30.

It’s a tough time to be a publicly traded crypto company. Coinbase CEO Brian Armstrong expects Coinbase revenue to drop at least 50% in 2022, exec says tweeted December 7.

The FTX contagion, along with a sharp and prolonged bear market, continues to weigh on shareholder sentiment and user activity. According to Messari, crypto markets are down more than two-thirds from their all-time highs, with bitcoin and ethereum falling 75% since the market peak in November 2021.

“Last year, in 2021, we had about $7 billion in revenue and about $4 billion in positive EBITDA, and this year, with everything going on, it looks like, you know, about half or less,” Armstrong said in an interview on Bloomberg’s David Rubenstein. View: Peer Conversations.

Ark’s flagship exchange-traded fund, ARK Innovation ETF (ARKK), holds a total of 6 million COIN shares, worth approximately $231,347,118. The fund’s Coinbase position is 3.44% of the fund. ARKK is down 60.39% since the start of the year.

Wood said ARKK’s businesses, however, “sacrifice short-term profitability for exponential, highly profitable long-term growth,” according to The Wall Street Journal.

Ark Invest also bought 78,992 COIN shares last week, as the famed fund manager continues to buy amid broader market turmoil, signaling Wood’s continued bullishness on crypto, regardless of the market conditions.

After the collapse of FTX, Sam Bankman-Fried’s crypto empire once worth $32 billion, Wood even doubled down on his prediction that bitcoin will hit $1 million by 2030, a staggering increase of 6 000% from its current price.

“Sometimes you have to do combat tests, you have to go through crises… to see the survivors,” she said in an interview with Bloomberg. “We think bitcoin comes out smelling like roses.”

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