- Cathie Wood’s Ark Invest has bought millions worth of Coinbase stock.
- COIN got dumped the next day following Wood’s purchases.
- Ark Invest has been aggressively buying COIN since the start of the year.
The crypto market has been suffering for the past few weeks. The failure of Silvergate, the lawsuits against KuCoin, Kraken, and Paxos, and other actions from U.S. regulators have put the total crypto market capitalization again under $1 trillion.
However, despite one of the harshest crypto winters in history, Cathie Wood’s Ark Invest has continued to buy Coinbase shares.
Cathie Wood Buys $20M Worth of Coinbase Stock
Cathie Wood’s Ark Invest, one of the most popular tech-focused asset management firms, has stayed bullish on crypto exchange Coinbase throughout the ongoing crypto bear market.
On Thursday, Ark added 301,437 COIN shares to its Ark Innovation and 52,252 shares to Ark Next Generation Internet. Based on the price of COIN ($58.08) at the market close on Thursday, Ark paid around $20.5 million for its purchases.
However, COIN dumped 7% on Friday following the news that the crypto-friendly Silicon Valley Bank is looking to sell itself amid liquidity problems. COIN is currently trading at $54.37, according to data from Yahoo! Finance.
That said, Ark has been aggressively buying COIN since the start of the year. In January, Wood’s Ark bought $10.47 million worth of COIN, and in February, the fund added another $16 million worth of Coinbase stock.
Ark holds around 9.9 million COIN worth $575 million across three of its funds, including Ark Innovation, Ark Next Generation Internet, and Ark Fintech Innovation.
On the Flipside
- COIN has been one of the worst-hit stocks in this bear market. It’s down around 84% from its all-time high of $357.59.
Why You Should Care
Coinbase is one of the industry’s most legit and trustworthy centralized cryptocurrency exchanges. It’s a welcoming sign to see a professional fund bullish on a crypto exchange during difficult times for crypto.
Read more about the latest controversy involving Coinbase:
Coinbase Refuses to Refund $96,000 in Lost Funds, Blames User
Read more about Silicon Valley Bank’s troubles:
Silicon Valley Bank’s Troubles: What It Means for Crypto