Ark Invest trims $6.6 million stake in coinbase

Ark Invest, under the leadership of Cathie Wood, made a substantial decision on Wednesday, 21 February 2024, to sell over $6 million in shares of Coinbase Global Inc.

This move came at a time when nearly $1 billion in Bitcoin withdrawals had diminished Coinbase's reserve to its lowest level since 2015.

On Wednesday, the company divested 40,683 shares through ARK Innovation ETF (ARKK) and Ark Fintech Innovation ETF (ARKF), with the transaction valued at $6.6 million. Coinbase shares concluded the day with a 6.28% increase, closing at $162.41. Post-market trading saw the shares climb by 5.6% to $168.

This move coincided with notable Bitcoin withdrawals from Coinbase, totaling nearly $1 billion and leaving the exchange with a reserve of 390,000 BTC, approximately $20 billion in value. This marks the lowest Bitcoin reserve level for Coinbase since 2015.

Despite these withdrawals, there is little cause for concern as these funds are likely being transferred to establish new custodial wallets or facilitate over-the-counter transactions, as detailed in a previous report.

Ark's sale of shares on Wednesday follows Coinbase's Q4 earnings report, which surpassed market expectations, revealing a surprise profit that had previously boosted investor confidence. Cathie Wood, founder of Ark Invest, has commented on Coinbase's strategic position, indicating that the company is well-positioned for success, despite Ark's recent divestment of shares.

Notable Key Trades:

·       SOFI Technologies Inc saw a significant buy from Ark, with 656,874 shares purchased, indicating a bullish stance on the financial services platform.

·       10X Genomics Inc also received a notable investment, with Ark buying 64,418 shares, underscoring the firm’s interest in cutting-edge genomic sequencing technology.

·       The investment in Unity Software Inc shares reflects Ark’s confidence in the development platform’s growth potential in gaming and beyond.

·       Archer Aviation Inc was another focus, with 243,028 shares bought, highlighting Ark’s investment in the future of air mobility.

Source: Benzinga

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