Ark Invest Adds Coinbase Stock as Crypto Exchange's Price Slides
Cathie Wood's Ark Investment Management said in an e-mail it bought 78,982 shares in cryptocurrency exchange Coinbase (COIN), its first investment in the crypto exchange in a month.
At Friday's closing price of $40.24 , the purchase would have cost about $3 million. The stock has been in a funk in recent months, and is down almost 60% from $98 in early August.
The purchase takes the ARK Innovation ETF's (ARKK) holding to 5.7 million COIN shares. That puts the purchase on the small side – increasing the ETF's exposure by 1.4%. It suggests the investment firm still sees bullish signs for the crypto sector, though may be opting for a cautious approach while the dust settles on a rocky period.
Coinbase CEO Brian Armstrong said last week the company's revenue this year would be at least 50% less than it was last year owing to the steep price drops in cryptocurrency prices and knock-on effects across the sector from multiple bankruptcies of large firms, such as rival exchange FTX.