Ark Investments, the investment firm led by Cathie Wood, increased Coinbase stock holdings after buying nearly 238,000 shares, totalling $12.1 million earlier this week.
The firm boosted its Coinbase shares across its numerous divisions, with Ark Investment Management adding to its ARK Innovation (ARKK), ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF) exchange-traded funds (ETFs) at 207,527, 22,416, and 7,732, respectively.
The share buyout increased Coinbase’s shares to 7.625 million, or 1 million less than its figures on 20 July this year at 8.675 million, data from Cathie’s Ark revealed.
$ARKK has purchased 350k more $TSLA shares in the last 30 days with 272k in the last 7 days. What does Cathie know we don’t know?
— Thomas Thornton (@TommyThornton) October 5, 2022
The news comes as the firm acquired roughly 350,000 shares of Tesla (TSLA) stocks this week, namely after Tesla CEO Elon Musk sold off nearly $4 billion in shares this month.
Coinbase SEC Row, FTX Collapse
Coinbase’s Brian Armstrong responded to the FTX liquidity collapse, stating it had “minimal exposure” of just $15 million to the cryptocurrency exchange and adding it was to “facilitate business operations and customer trades.”
Coinbase’s share prices tumbled 10.84 percent on 8 November following the FTX exchange crisis. The firm reiterated it had no exposure to FTT, FTX’s native token, which plummeted just over 84 percent after numerous exchanges such as crypto trading giant Binance liquidated their full coin holdings.
2/ Second, Coinbase doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda).
— Brian Armstrong (@brian_armstrong) November 8, 2022
Ark Investments also sold off more than 1.4 million shares across its ETFs, totalling $75 million, triggered by a US Securities Exchange Commission (SEC) investigation into alleged insider trading of unregistered securities.
The exchange also ordered mass layoffs of 60 positions, and Alesia Haas, Coinbase’s CFO, said in a statement: “Today’s actions were surgical. We are just making sure we are not wasting a dollar […] If we see that there is going to be further depressed revenue, and if we believe this is going to impact beyond the scenarios we have already planned for, we will have to take further cost-saving action.”
