Ark Invest Scoops Up $11.5M in Coinbase Shares as COIN Plunges Over 17%
Ark Invest seized the opportunity to buy the dip on Coinbase (COIN) shares, acquiring 64,358 shares worth $11.5 million across two of its exchange-traded funds (ETFs) on Monday.
The investment move came as COIN plummeted 17.6%, dropping to $172, according to data from Yahoo Finance.
Of the total purchase, the Cathie Wood-led investment firm added 52,753 shares ($9.4 million) to its Ark Innovation ETF (ARKK) and 11,605 shares ($2.1 million) to its Ark Fintech Innovation ETF (ARKF).
This follows Ark’s continued accumulation of Coinbase stock, with $8 million purchased last week for its Next Generation Internet ETF (ARKW) and $8.7 million the week before, bringing its three-week total to $28.2 million.
Coinbase Among Ark’s Largest Holdings
Ark’s investment strategy limits any single holding to no more than 10% of a fund’s portfolio to maintain diversification.
Based on its latest disclosures, COIN is the third-largest holding in ARKK, with a 7.1% weighting worth approximately $375.1 million, trailing Tesla and Roku.
Meanwhile, in ARKF, Coinbase represents Ark’s second-largest holding, with a 7.7% weighting valued at around $65.7 million, following Shopify.
Coinbase shares closed at $179.23 on Monday, down 17.6%, and have plunged 34.6% over the past month.
However, COIN rebounded 4.3% in pre-market trading on Tuesday, per TradingView. The company currently holds a market valuation of $33.3 billion.
Other crypto-related stocks also faced heavy losses, with MicroStrategy (MSTR) falling 16.7% and Marathon Digital (MARA), the largest publicly traded Bitcoin miner, dropping 16.3%.
Meanwhile, Bitcoin (BTC) slid 7.6%, and the GMCI 30 index, which tracks the top 30 cryptocurrencies, declined 8.4%.
Ark Makes Bold Moves Amid Market Turbulence
In addition to Coinbase, Ark bought 269,864 Robinhood (HOOD) shares worth $9.6 million for its ARKK fund as HOOD stock plunged 19.8%.
At the same time, Ark sold 375,607 shares in Block (SQ) from its ARKK and ARKW funds, following an 8.8% drop in Block’s stock.
Ark’s aggressive rebalancing extended beyond crypto stocks, with the firm also buying the dip in Tesla (TSLA), Palantir Technologies (PLTR), Advanced Micro Devices (AMD), Tempus AI (TEM), and Robinhood (HOOD).
Simultaneously, it trimmed holdings in SoFi Technologies (SOFI), Block (SQ), and UiPath (PATH).
The selloff in tech stocks comes amid economic uncertainty, with analysts warning of a potential U.S. recession.
The “Magnificent 7” tech stocks collectively lost $780 billion in market cap in a single day, underscoring investor concerns.
However, Cathie Wood remains bullish, predicting a “deflationary boom” in the second half of 2025, arguing that the current market volatility represents the final phase of a looming recession.
She has called the current market as “the last leg of a rolling recession.”
The pro-crypto exec added that the market slump will provide more policy flexibility for both Trump administration and the Powell-led Fed than investors expect.
The asset manager previously predicted that innovation in sectors like AI and crypto would witness rapid growth under Trump’s administration.