Cathie Wood’s Ark Invest Buys $18M Coinbase Shares After Stock Drops to 5-Months Low
ARK Invest capitalized on Monday’s significant market downturn by acquiring Coinbase (COIN) shares for the first time in months.
Cathie Wood’s investment firm purchased $17.8 million worth of Coinbase stock, marking its initial buy since June 6, 2023, when it invested $21.6 million.
The acquisition came as COIN dropped 7.3% to $189.47 amid a market-wide sell-off that saw substantial losses in both crypto and global stock markets.
The crypto company’s shares are now trading at $189, a level last seen five months ago.
ARK Invest often buys shares during price dips, with the strategy of selling them once prices recover.
The firm seeks to maintain a balanced portfolio, ensuring no single holding exceeds 10% of any of its exchange-traded funds (ETFs).
The strategy has led to significant selling of COIN in recent months.
Post-purchase, COIN now represents 8.55% of ARK’s Innovation ETF (ARKK), 6.73% of its Next Generation Internet fund (ARKW), and 9.72% of its Fintech Innovation ETF (ARKF).
As reported, Bank of America (BAC) has recently upgraded its rating on Coinbase shares from underperform to neutral, raising its price target for Coinbase to $217 from $110.
Aside from Bank of America, investment banking firm KBW has also increased its Coinbase price target.
In a research analysis, KBW raised its Coinbase price target from $160 to $230 while maintaining its market performance rating.
It is worth noting that ARK Invest also made other major acquisitions during the dip on Monday, including 12,426 shares of Tesla (TSLA) valued at $2.5 million and 176,963 shares of Amazon (AMZN) worth $28.5 million.
Additionally, Ark Invest purchased 681,885 shares of Robinhood (HOOD) for $11.12 million, 12,545 shares of Meta (META) valued at $5.96
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