- Cathie Wood’s ARK Investment Management has bought over $21 million worth of Coinbase shares following the SEC’s lawsuit.
- ARK bought 419,324 shares of Coinbase, split across ARK’s Innovation ETF, the Next Generation Internet ETF, and the Fintech Innovation ETF.
- ARK’s latest acquisition of Coinbase shares has brought their total holdings to 11.44 million, with an estimated value of approximately $590 million.
- ARK has been adding to its stake in Coinbase on dips for nearly a year despite crypto market volatility.
Cathie Wood’s Ark Investment Management has further cemented its investment in Coinbase Global (COIN) by purchasing over $21 million worth of its stocks, split across multiple ETFs including the Innovation ETF, Next Generation Internet ETF, and the Fintech Innovation ETF.
Despite the recent SEC lawsuit against Coinbase, which led to a decline in share prices, Ark continues to hold a significant position in the company, now totaling 11.44 million shares and valued at approximately $590 million. ARK has been increasing its stake in Coinbase for almost a year, even amidst regulatory crackdowns and market volatility. As of now, they stand as the fourth-largest holder of Coinbase stocks.
Cathie Wood’s Ark Invest buys Coinbase shares worth $21 million, despite SEC lawsuit.
Is Cathie’s Coinbase bullishness going to pay off? 👀 pic.twitter.com/AmuPyXqQCP
— Crypto Crib (@Crypto_Crib_) June 7, 2023
SEC Vs Coinbase
The recent SEC lawsuit against Coinbase, alleging federal securities law violations, came just one day after a similar lawsuit against Binance. Nevertheless, Ark has stuck to its strategy and doubled down on its investment in Coinbase, showing a strong belief in the company’s long-term potential.
According to a recent complaint filed by the SEC, cryptocurrency exchange Coinbase has been accused of acting as a broker, an exchange, and also a clearing agency all at once, without registering as any of these organizations. The SEC alleges that Coinbase provided traditional services of an exchange, broker, and clearing agency without registering for any of them.
Moreover, Coinbase has been charged for engaging in the unregistered offer and sale of securities under its staking-as-a-service program. As per the SEC’s complaint, Coinbase’s failure to register has deprived investors of various essential protections, including investor protection measures, recordkeeping procedures, and measures to guard against conflicts of interest, among others. In accordance with the news, Coinbase’s stock price plummeted more than 12% at the time of the accusations.
ARK Taking the Opportunities
ARK has a knack for seizing opportunities when they present themselves, especially when it comes to dips in the stock price of Coinbase. Their latest move of buying low and selling high wasn’t their first rodeo either – back in March, ARK followed the same strategy and emerged victorious despite the Wells-induced dip.
Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program.https://t.co/XPG2gDkxtV pic.twitter.com/hCdVMw8B2v
— U.S. Securities and Exchange Commission (@SECGov) June 6, 2023
This investment in Coinbase holds a special place in ARK’s portfolio, as it aligns with their broader objective of investing in transformational technologies and companies that are shaping the world.
Cathie Wood, the CEO of Ark, is a prominent figure in the crypto community due to her unwavering enthusiasm for Bitcoin and other digital currencies. She is quite vocal about advocating for the adoption of blockchain technology, and her investment in Coinbase is a testament to her confidence in the future of the crypto industry. Despite regulatory obstacles, Wood maintains an unshakable positive outlook on the long-term potential of cryptocurrencies and blockchain.
Summary:
ARK Investment Management has once again proven its savvy moves in the market by purchasing over a whopping $21 million worth of Coinbase shares after a dip in the company’s stock price caused by pressures from the SEC.
This latest acquisition further demonstrates ARK’s wider strategy to invest in companies that are driving transformational change and disruptive technologies. At the heart of ARK’s decision to invest in Coinbase is Cathie Wood’s bullish stance on Bitcoin and other cryptocurrencies. By investing in Coinbase, Wood is betting on the future of the crypto industry. Despite the regulatory hurdles faced by the industry, she remains optimistic about the long-term potential of cryptocurrencies and the underlying blockchain technology.
