ARK Invest Purchases Coinbase Shares as Bitcoin Dips Below $50,000

Cathie Wood’s investment firm, ARK Invest, has made a notable return to buying Coinbase stock amidst a turbulent period in the cryptocurrency market. The purchase comes as Bitcoin briefly falls below $50,000, reflecting broader market volatility.

ARK Invest’s Strategic Move

On August 5, ARK Invest acquired 28,632 Coinbase shares for $5.4 million, marking a significant shift after previously reducing its holdings in the stock throughout 2024. The shares were bought at a price of $189.50, according to TradingView data from August 6.

This strategic purchase comes as Bitcoin (BTC) experienced a dramatic decline, dropping below $50,000 for the first time since February 2024. The cryptocurrency briefly hit $49,800 before recovering to around $55,000. As of the latest data, Bitcoin was trading at $55,661, up approximately 6% in the past 24 hours but still down 16% over the past week.

The decline in Bitcoin’s price had a direct impact on Coinbase’s stock value. On August 5, Coinbase shares fell by 20.7%, reaching as low as $173 per share. However, the stock later recovered to close at $189.50, marking a 7% decline from the previous day’s close. Over the past year, Bitcoin has gained around 93% in value, while Coinbase’s stock surged more than 110%.

ARK Invest’s Broader Trading Activity

In addition to its Coinbase purchases, ARK Invest has been active in adjusting its positions in other cryptocurrency-related assets. On August 5, ARK sold 454,775 shares of Jack Dorsey’s Block, worth approximately $26 million. The firm also liquidated its holdings in Ether (ETH) futures-based exchange-traded funds (ETFs), including 70,316 shares of the ProShares Ether Strategy ETF (EETH) for $3.4 million and 17,303 shares of the ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ) for roughly $470,000.

Despite these sales, ARK Invest continued its bullish stance on crypto-friendly assets by purchasing 681,885 shares of the stock trading app Robinhood for $11.2 million.

ARK Invest’s recent actions highlight a strategic reallocation amidst significant market volatility. The firm’s decision to buy Coinbase shares during Bitcoin’s dip, alongside its shifts in other cryptocurrency-related assets, underscores a dynamic approach to navigating the complexities of the crypto market. As Bitcoin and related assets continue to experience fluctuations, ARK Invest’s moves will be closely watched by investors and market observers alike.