The asset management company ARK Invest has increased its stake in the cryptocurrency platform Coinbase as technology stocks experience a downturn and Bitcoin prices fall to their lowest points in several months.
As per the firm’s most recent report, they acquired 41,032 shares of Coinbase Global Inc. (COIN), amounting to roughly $9.3 million. This recent purchase follows just over two months after the firm, headed by Cathie Wood, divested $4.3 million worth of COIN shares at the close of December last year.
This enhancement took place within ARK’s Next Generation Internet Exchange-Traded Fund (ETF), an actively managed fund aimed at achieving long-term capital growth by primarily investing in both domestic and international firms associated with the fund’s investment themes.
With Coinbase’s stock lagging in performance over the previous week, ARK Invest took advantage of the situation to acquire additional shares. As previously noted by crypto.news, COIN’s stock declined by over 5% after Bank of America reduced its price target from $363 to $311, citing heightened competition and revenue challenges.
Experts have cautioned that the involvement of traditional financial entities in the cryptocurrency market could pressure Coinbase’s trading revenues, which continue to be its main source of earnings.
At the time of this report, Google Finance shows that COIN closed at $212.49 on February 25, down 6.42% for the day and more than 20% over the past week.
Due to the fluctuations in the cryptocurrency market, Coinbase’s stock has encountered difficulties, with over $1 billion in liquidations happening in the last 24 hours following Donald Trump’s announcement of new import tariffs on products from Canada and Mexico, along with a 10% tariff on Chinese goods.
Investors are feeling downbeat, worried that rising expenses may worsen inflation and create further economic instability, which could adversely affect technology stocks and high-risk investments like Bitcoin.
Bitcoin has decreased by 3.
As of the moment of composition, the value is positioned at $88,534, indicating a 5% reduction since November of the previous year, whereas the overall market capitalization of the digital currency industry has decreased by 3.2% in the same timeframe, currently at $3.04 trillion. Simultaneously, the Nasdaq Composite Index, which is significantly influenced by technology shares, has also experienced a drop of 1.35%.
Nevertheless, ARK Invest seems to uphold a positive perspective on Coinbase, likely owing to the firm’s fourth-quarter earnings report, which outperformed projections with a 138% increase compared to 2023, exceeding the $188 million estimate by LSEG analysts.
Moreover, the U.S. Securities and Exchange Commission has dropped its lawsuit against Coinbase, which was among the most significant enforcement actions concerning cryptocurrency during the leadership of former Chairman Gary Gensler.
ARK Invest also divested 98,060 shares of the ARK 21Shares Bitcoin Ready for an Upswing? Market Adjustment Indicates Possible Surge ETF (ARKB) from its ARKW fund. Based on Tuesday’s closing value of $87.86 for the ETF, this transaction is estimated to be around $8.6 million.
