Cathy Wood, CEO of investment management firm ARK Invest, has acquired more shares of major cryptocurrency exchange Coinbase, which has lost nearly 90% of its value over the past year.
company Bought On Thursday, roughly $5.8 million worth of COIN stock was split between the ARK Next Generation Internet (ARKW) and the ARK Fintech Innovation ETF (ARKF) ETF, with the former comprising 27,813 COIN shares and the latter 144,463 shares.
Wood’s investment management firm ARK has been depositing coinbase aggressively share. In the past month alone, he has snapped up nearly 800,000 Coinbase shares, worth around $27 million as of Jan. 5. All the buying has made Coinbase the #14 holding in Wood’s flagship Ark Innovations ETF ARKK.
ARKF, launched in 2019, plans to Investment ARK believes that technology infrastructure platforms are transforming financial services and economic transactions in equity securities of companies. Square, Shopify, and PayPal are the top three holdings of the fund.
Coinbase is the largest US cryptocurrency exchange. The platform went public back in 2021, but has faced weakness in the crypto market since then. Coinbase stock has taken an 86% dive in 2022.
Meanwhile, Wood is looking less bullish on crypto-focused bank Silvergate, as he offloaded more than 400,000 shares of the company, worth about $5 million based on the day’s closing price. This leaves the fund with only 3,434 Silvergate shares, which were recently valued at only $37,465.
As mentioned, Silvergate 40 percent reduction in staff amid a 68% drop in crypto-related deposits in the fourth quarter of last year. In the wake of the bankruptcy of FTX, the company faced a bank run This forced the company to sell assets in respect of customer withdrawals worth $8.1 billion.
Wood’s funds haven’t done well in the past two years amid high inflation and weak earnings. For example, Cathy Wood’s ARK Innovations ARKK has lost more than 60% of its value in 2022, causing many investors to pull their money out of the fund.
However, Wood continues to be bullish on his investments, claiming they have high long-term growth potential. Recently in a tweet he Told,
“The financial world criticizes and condemns ARK Invest’s research and investment focus on exponential growth: it defies our forecast of massive latent profitability in companies that sacrifice short-term profitability for exponential and highly profitable long-term growth. “
It is worth noting that Coinbase failed to benefit from the collapse of rival platform FTX last year. In contrast, Binance, the world’s largest cryptocurrency exchange, ends 2022 with 66.7% market share compared to 48.7% at the beginning of the year.
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