Cathie Wood’s Ark Invest has once again doubled down on Coinbase (COIN), purchasing 64,358 shares worth approximately $11.5 million as the stock suffered a 17.6% decline in a turbulent trading session. This latest acquisition extends Ark’s ongoing accumulation spree, bringing its total Coinbase purchases over the last three weeks to $28.2 million.
Strategic Rebalancing or a Strong Bet?
The bulk of the new investment went into Ark’s flagship Innovation ETF (ARKK), which received 52,753 shares ($9.4 million), while the remaining 11,605 shares ($2.1 million) were added to the Fintech Innovation ETF (ARKF).
Ark’s portfolio strategy ensures no single asset dominates more than 10% of a fund’s weight. With COIN now 7.1% of ARKK and 7.7% of ARKF, further purchases may depend on how Coinbase’s stock moves in the coming weeks.
Currently, COIN is the third-largest holding in ARKK, behind only Tesla and Roku, while it ranks second in ARKF, trailing Shopify. Ark’s continued commitment signals confidence in the long-term potential of the crypto exchange, despite near-term volatility.
Market Carnage Hits Crypto Stocks
Coinbase wasn’t the only crypto-related stock taking a hit. Shares of MicroStrategy fell 16.7%, while Marathon Digital Holdings (MARA)—the largest publicly traded Bitcoin miner—plummeted 16.3%. Meanwhile, Bitcoin itself dropped 7.6%, dragging down the broader GMCI 30 Index by 8.4%.
Despite the sell-off, Coinbase showed resilience, bouncing back 4.3% in pre-market trading, suggesting that institutional buyers like Ark see this as an opportunity rather than a warning sign.
A Contrarian Play in Uncertain Markets?
Ark Invest’s purchases come at a time when investor sentiment is shaky, with macroeconomic fears pressuring equities and digital assets alike. The firm’s aggressive buying could indicate strong conviction in Coinbase’s role as a dominant player in the crypto sector.
As the market digests these moves, traders will be watching whether this dip presents a buying opportunity or if further declines are ahead. While Ark’s track record includes both big wins and major drawdowns, its strategy often involves long-term positioning in high-growth industries.
⚠️ This article is not financial advice. Always conduct your own research before making investment decisions.
