Asset management firm ARK Invest, led by Cathie Wood, has acquired more shares of cryptocurrency exchange Coinbase (COIN) after both tech stocks and Bitcoin saw declines. According to the latest update from the firm, ARK Invest purchased 41,032 shares of Coinbase, valued at $9.3 million. This comes just over two months after the firm sold $4.3 million worth of COIN stock in late December.
The latest acquisition took place through ARK’s Next Generation Internet ETF (ARKW), an actively managed exchange-traded fund (ETF) designed to achieve long-term capital growth by investing in both domestic and international companies linked to the next-gen internet space.
Coinbase Struggles Amid Market Turmoil
ARK’s move to buy the dip comes as Coinbase shares have struggled recently. As reported by crypto.news, COIN saw a drop of over 5% following a downgrade from BofA Securities, which reduced its price target from $363 to $311. The downgrade was attributed to increasing competition and pressure on Coinbase’s revenue, particularly as traditional financial firms begin entering the crypto space. This could affect Coinbase’s primary income stream — its transaction revenue.
At the time of writing, Google Finance data shows COIN closing at $212.49 on February 25, marking a 6.42% drop for the day and a 20% decline over the past week.
Market Turbulence Hits Coinbase and Crypto Sector
The downturn in Coinbase stock comes amid broader market volatility. In the past 24 hours, the crypto market faced over $1 billion in liquidations, driven by market uncertainty after Donald Trump confirmed new tariffs on imports from Canada, Mexico, and China. The 10% tariff on Chinese goods, in particular, created fears about rising costs and inflation, putting additional pressure on tech stocks and risk assets like Bitcoin.
At the time of writing, Bitcoin was down 3.5% to $88,534, its lowest price since November last year. The total crypto market capitalization also dropped 3.2% to $3.04 trillion, while the tech-heavy Nasdaq Composite slipped 1.35% during the same period.
ARK Invest Bullish on Coinbase Despite Challenges
Despite these market headwinds, ARK Invest appears confident in Coinbase’s long-term prospects. The company’s strong Q4 earnings have likely played a part in this optimism. Coinbase reported a 138% year-over-year increase in earnings, surpassing analyst expectations with $1.88 billion in revenue, beating estimates from LSEG analysts.
Additionally, ARK Invest may be encouraged by the U.S. Securities and Exchange Commission’s (SEC) decision to drop its lawsuit against Coinbase. The lawsuit had been one of the SEC’s largest crypto-related enforcement actions under former chair Gary Gensler, and its dismissal could help reduce regulatory uncertainty for the company.
ARK Invest Offloads Bitcoin ETF Shares
While ARK Invest has been adding to its Coinbase position, it has also made some strategic sell-offs. The firm sold 98,060 shares of the ARK 21Shares Bitcoin ETF (ARKB) from its ARKW fund, worth approximately $8.6 million based on the ETF’s closing price of $87.86 on February 20.
Despite some moves away from Bitcoin-related investments, ARK Invest’s ongoing support of Coinbase suggests it remains optimistic about the long-term outlook for both the company and the broader digital assets space.
