Cathie Wood’s ARK Adds $12.1M in Coinbase Stock Amid Turbulent Markets

Amid FTX and Crypto Market Chaos, Ark Investments Led by Cathie Wood Has Increased Its Coinbase (PIECE OF MONEY) holdings with a purchase of 237,675 COIN shares worth approximately $12.1 million on November 9.

Of the 237,675 COIN shares, Ark Investment Management added 207,527 shares to its ARK Innovation ETF (ARKK), 22,416 shares in its ETF ARK Next Generation Internet (ARKW)and 7,732 other shares to its ETF ARK Fintech Innovation (ARKF).

The purchase of the technology-focused investment company came after Coinbase declared in response to FTX’s liquidity crisis that he has “minimal exposure” to the now cash-strapped cryptocurrency trading platform with just $15 million on deposit to “facilitate business operations and client transactions.”

Coinbase also added that it has no exposure to FTX’s native token. FTT — which has fallen 84.08% since Binance has announced its decision to liquidate all of its FTT holdings late November 7 – and its partner commercial company Alameda Research.

Wood’s purchase on November 9 came on the heels of a 10.84% ​​drop in COIN stock price on November 8, which was an expected result following the FTX controversy, according to Owen Lau, equity analyst at investment bank Oppenheimer:

“Although COIN has minimal exposure to FTX, before there is sufficient evidence that contagion risk is contained, crypto price pressure will likely weigh on COIN.”

It was also the investment firm’s first transaction for Coinbase since selling more than 1.4 million COIN shares – which were then worth $75 million – on ARKK, ARKF and ARKW on the 26th. July 2022.

The big sale came in response to the US Securities Exchange Commission (SEC) investigating allegations of Coinbase engaging in insider trading of unregistered securities.

However, Wood’s latest buying spree brought the company’s COIN share count down to 7.625 million, about a million shares shy of its July 20, 2022 peak of 8.675 million. according to Cathie’s Ark data.

Coinbase now holds the 11th largest stake in Ark’s main investment fund, ARKK, which now accounts for 3.79% of the portfolio. Coins Stock rose 10.74% on Thursday, taking its stock price to $50.92, according to Yahoo Finance.

Related: Breaking: Google Taps Coinbase to Bring Crypto Payments to Cloud Services

On November 10, Coinbase announced that it was cutting 60 positions within the company.

“Today’s actions were surgical. We are just careful not to waste a dollar,” Coinbase CFOalesia Haas said, according to a Nov. 10 report. report from Bloomberg.

“If we see that there will be a further drop in revenue, and if we believe that will have an impact beyond the scenarios we have already forecasted, we will have to take further measures to reduce costs.”

Update November 11 at 03:55 UTC: Added reports that Coinbase will cut 60 positions within the company.