🚀 ARK Invest Sells Coinbase Stock: What Does it Mean for the Crypto Exchange?

Cathie Wood's ARK Invest Sells Large Amount of Coinbase Stock in Anticipation of Impressive Earnings Report

Cathie Wood’s ARK sells more Coinbase stock amidst Bitcoin surge.

Last updated: February 16, 2024 05:44 EST | Reading Time: 2 min
Author: Ruholamin Haqshanas

ARK Invest, the asset management firm led by the renowned Bitcoin (BTC) advocate Cathie Wood, has made a surprising move by selling a significant amount of Coinbase stock prior to the crypto exchange’s remarkable earnings report.

According to a filing on Thursday, ARK Invest unloaded a whopping $34.3 million worth of Coinbase shares from three of its funds: ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW).

This divestment marks the first time since January 11 that ARK Invest has sold any of its Coinbase holdings. The sale coincided with a surge in Coinbase’s stock price, which witnessed an 11% increase during after-hours trading following the release of the company’s earnings report.

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Ark Invest Continues to Sell Coinbase Shares

ARK Invest currently stands as the second-largest holder of Coinbase stock. However, the company has been actively selling its Coinbase shares over the past few months.

In December of last year, Ark Invest sold an astonishing $49.2 million worth of Coinbase shares, marking one of its largest sales since July, when it offloaded 480,000 shares valued at $50.5 million.

Additionally, Ark Invest sold 160,887 shares of Coinbase, valued at $13.5 million, in March of last year.

The company has continued its selling spree this year as well. In January, they sold 166,183 shares worth $25.3 million.

Cathie Wood, known for her bullish stance on Bitcoin and other cryptocurrencies, has been a prominent figure in the crypto space. It might raise some eyebrows among investors to see her firm selling Coinbase shares, especially considering the positive earnings report and the recent surge in Bitcoin’s price.

However, it’s important to note that ARK Invest follows a dynamic investment strategy, constantly adjusting its portfolio based on market conditions and the firm’s outlook.

Coinbase Reports Quarterly Profit

Coinbase recently announced its fourth-quarter earnings for 2023 and revealed a staggering profit of $273.4 million compared to a loss of $557 million during the same period the previous year.

The approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) reignited the interest in the cryptocurrency market, leading to a substantial 57% increase in Bitcoin’s price in the fourth quarter of 2023. This notable rise contributed to Coinbase’s transaction revenue, which reached an impressive $529.3 million, a 64% increase.

The San Francisco-based exchange attributed its return to profitability to the surge in cryptocurrency prices and the increased interest in its USD Coin (USDC) product. Coinbase allows users to earn rewards by holding the stablecoin on its platform.

To further emphasize its role in reshaping the financial system, Coinbase unveiled a new television ad that humorously mocks traditional United States fiat currency, symbolizing the need for a digital upgrade to replace outdated physical currency. Coinbase has a tradition of releasing advertisements that challenge traditional societal norms.

Q&A Section:

Q: Why did ARK Invest sell Coinbase shares despite the positive earnings report?

A: ARK Invest follows a dynamic investment strategy and constantly adjusts its portfolio based on market conditions and its outlook. It’s important to note that selling stocks doesn’t necessarily indicate a lack of confidence in the company’s future prospects.

Q: How does the surge in Bitcoin’s price impact Coinbase’s profitability?

A: The rise in Bitcoin’s price attracts more users to trade and invest in cryptocurrencies, leading to increased transaction volumes on Coinbase. As a result, the company’s transaction revenue and profitability have surged.

Q: What is Coinbase’s USD Coin (USDC) product?

A: USD Coin (USDC) is a stablecoin pegged to the US dollar, allowing users to hold a digital asset that maintains a stable value. Coinbase allows users to earn rewards by holding USDC on its platform.

Q: How does Coinbase challenge traditional societal norms with its advertisements?

A: Coinbase’s advertisements aim to debunk misconceptions surrounding cryptocurrency and highlight its importance in updating the financial system. They challenge the perception of cryptocurrency as solely a speculative asset or associated with reckless trading.

Future Outlook

Although ARK Invest’s selling of Coinbase shares might raise concerns for some investors, it’s crucial to remember that investment strategies evolve with changing market dynamics. As the crypto industry continues to mature, it is expected that both Coinbase and cryptocurrencies, in general, will experience both ups and downs.

Investors should closely monitor market trends, regulatory developments, and the company’s financial performance to make informed investment decisions in the dynamic world of cryptocurrencies.

For more updates and in-depth analysis of the blockchain industry, follow us on Google News and stay tuned for our upcoming articles.

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Reference List:

1. Ruholamin Haqshanas – Author’s personal website
2. ARK Invest Continues to Sell Coinbase Shares
3. Coinbase Reports Quarterly Profit
4. Cathie Wood’s ARK Sells More Coinbase Stock Amid Bitcoin Surge – Image Source
5. Coinbase Unveils New Television Ad
6. ARK Invest Sells $49.2 Million Worth of Coinbase Shares
7. ARK Invest Offloaded Coinbase Shares Valued at $50.5 Million
8. ARK Invest Sold Coinbase Shares Worth $13.5 Million?s=Ark+Invest+sold+160,887+shares+of+Coinbase,+valued+at+$13.5+million)**

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