ARK Invest Acquires Coinbase at Price Dip Amid Bitcoin's Plunge to Long-Term Depths

ARK Invest, an asset management firm, has acquired shares of Coinbase, a cryptocurrency exchange, as technology stocks experienced a dip and Bitcoin reached multi-month lows.

Based on the firm's most recent update, it purchased 41,032 shares of Coinbase Global Inc. (COIN) worth $9.3 million. This latest acquisition occurred slightly over two months after the Cathie Woods-led company sold $4.3 million worth of COIN stocks in late December.

The purchase was made through the ARK Next Generation Internet exchange-traded fund. This actively managed ETF product aims for long-term capital growth by primarily investing in domestic and foreign equity securities of companies related to the fund's investment theme of next-generation Internet.

ARK Invest made the purchase as Coinbase shares faced difficulties over the past week. As reported earlier by crypto.news, COIN shares fell by over 5% after BofA Securities lowered its price target from $363 to $311, citing increasing competition and pressure on revenue.

Analysts cautioned that traditional financial institutions entering the crypto space could impact Coinbase's transaction revenue, which is its primary source of income.

At the time of publication, Google Finance data indicated that COIN closed at $212.49 on Feb. 25, down 6.42% for the day and over 20% in the past week.

Coinbase stocks also faced challenges as the crypto market experienced volatility, with over $1 billion in liquidations in the past 24 hours. This turbulence was triggered by Donald Trump's confirmation of new tariffs on imports from Canada and Mexico, along with a 10% tariff on Chinese goods.

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Investors were concerned that rising costs could lead to inflation and greater economic uncertainty, causing tech stocks and risk assets like Bitcoin to decline.

At the time of writing, Bitcoin had dropped by 3.5% to $88,534, a level last seen in November last year, while the total crypto market capitalization fell by 3.2% to $3.04 Trillion. Meanwhile, the tech-heavy Nasdaq Composite dropped by 1.35%.

Despite these challenges, ARK Invest appears optimistic about Coinbase, likely due to the company's stronger-than-expected Q4 earnings, which represented a 138% increase from 2023 and surpassed the $1.88 billion estimate from LSEG analysts.

Furthermore, the U.S. Securities and Exchange Commission has dropped its lawsuit against Coinbase, which was one of the commission's most significant crypto-related enforcement actions under former chair Gary Gensler.

ARK Invest also sold 98,060 shares of the ARK 21Shares Bitcoin ETF (ARKB) from its ARKW fund. The sell-off was valued at approximately $8.6 million based on the ETF’s closing price of $87.86 on Tuesday.

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