Cathie Wood’s ARK Sells More Coinbase Stock Amid Bitcoin Surge

ARK Invest, the asset management firm led by prominent Bitcoin (BTC) advocate Cathie Wood, has sold a significant amount of Coinbase stock ahead of the crypto exchange’s impressive earnings report.

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

The move marks the first time since January 11 that ARK Invest has divested some of its Coinbase holdings.

The sale coincided with a surge in Coinbase’s stock price, which rose 11% in after-hours trading following the release of the company’s earnings report.

Cathie Wood and Ark Invest's trade activity from today 2/14 pic.twitter.com/HcGkLKtmAT

— Ark Invest Daily (@ArkkDaily) February 15, 2024

Ark Invest Continues to Sell Coinbase Shares

ARK Invest is currently the second-largest holder of Coinbase stock.

The company has made several significant sales of Coinbase shares in recent months

In Dember last year, Ark Invest sold $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.

On a separate occasion, Ark Invest sold 160,887 shares of Coinbase, valued at $13.5 million, in March last year.

The company has also resumed its selling spree this year.

In January, the firm 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.

Her firm’s decision to sell Coinbase shares might raise eyebrows among investors, considering the positive earnings report and the recent surge in Bitcoin’s price.

However, it’s important to note that ARK Invest has 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, revealing a profit of $273.4 million compared to a loss of $557 million during the same period the previous year.

The quarterly profit comes in the wake of the U.S. Securities and Exchange Commission’s (SEC) approval of spot bitcoin exchange-traded funds (ETFs), sparking renewed interest in the cryptocurrency market.

The approval led to a substantial 57% increase in Bitcoin’s price in the fourth quarter of 2023, contributing to a 64% rise in Coinbase’s transaction revenue, which reached $529.3 million.

The San Francisco-based exchange attributed its return to profitability to the surge in cryptocurrency prices and increased interest in its USD Coin (USDC) product.

Coinbase allows users to earn rewards by holding the stablecoin on its platform.

More recently, the exchange unveiled a new television ad that playfully mocks traditional United States fiat currency, depicting it as a penny coin.

In the ad, the penny is humorously tossed into a bin and vacuumed, symbolizing the need for a digital upgrade to replace outdated physical currency.

The penny…
$1.2 million worth of them go missing every year.
It costs nearly 3x the value of one just to make one.
And it’s been 167 years since its last update.

Thankfully, crypto can move the penny forward.
Right, Abe? pic.twitter.com/FN8jtnPzj3

— Coinbase 🛡️ (@coinbase) February 12, 2024

Coinbase has a history of releasing advertisements that challenge traditional societal norms. 

In May 2023, they released an ad explaining why crypto is crucial for updating the financial system, aiming to debunk misconceptions surrounding cryptocurrency being solely a speculative asset or associated with reckless trading.