Cathie Wood’s Ark Invest scoops up $5.5 million worth of Coinbase shares

  • Cathie Wood’s Ark Invest bought $5.5 million worth of Coinbase shares this week.
  • The famed fund manager now owns $47 million of the company’s stock in his Ark Fintech Innovation ETF.
  • ARKF is down 68% year-to-date and Coinbase is down 86%.

Cathie Wood’s Ark Invest bought an additional $5.5 million worth of Coinbase shares on Thursday, continuing the investment firm’s buying spree as turmoil hangs over the cryptocurrency platform.

The famed fund manager now owns $47 million of the company’s stock in his Ark Fintech Innovation ETF (ARKF). Coinbase represents 7.14% of its holdings, with a total of 1.35 million shares.

Ark Invest is also a top shareholder in Coinbase, holding a 4.3% stake as of Sept. 30, according to data from Bloomberg.

It’s been a tough year for Coinbase. Shares of the company are down 86.29% year-to-date, currently trading near record lows at $34.13.

The company continues to feel the brunt of a prolonged crypto bear market, as well as a challenging macro environment that leaves investors wary of tech stocks across the board.

CEO Brian Armstrong has warned that the company’s revenue this year will fall by more than 50%.

“(CEO Brian Armstrong) has indicated that he expects Coinbase’s fiscal 2022 revenue to be less than half of fiscal 2021 revenue,” Coinbase said in a tweet on the 9th. December.

The collapse of Sam Bankman-Fried’s FTX last month dragged the industry even further. The fledgling space’s credibility is in question after the exchange collapses into bankruptcy, forcing shareholders to turn away from their crypto-related bets.

Ark Invest is taking this opportunity to buy the shares of the troubled exchange at a discount, which shows the fund’s long-standing belief in Coinbase and digital assets more broadly.

After the fall of FTX, Wood predicted that bitcoin would hit $1 million by 2030, which is an increase of nearly 6,000% from its current price. She said the cryptocurrency would come out of the bear market smelling “rose”, according to Bloomberg.

Meanwhile, Wood has also had a tough year, with ARKF down 65.85% year-to-date. But she has previously said that the companies in her funds “sacrifice short-term profitability for exponential, highly profitable long-term growth,” according to the Wall Street Journal.

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