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ARK Invest Sells Significant Amount of Coinbase Stock
ARK Invest, the asset management firm led by prominent Bitcoin advocate Cathie Wood, has recently sold a significant amount of Coinbase stock.
Details of the Sale
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, ARK Fintech Innovation ETF, and ARK Next Generation Internet ETF.
Recent Trade Activity
This 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.
Ark Invest Continues to Sell Coinbase Shares
ARK Invest is currently the second-largest holder of Coinbase stock and has made several significant sales of Coinbase shares in recent months. In December last year, Ark Invest sold $49.2 million worth of Coinbase shares, marking one of its largest sales since July. 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, with a sale of 166,183 shares worth $25.3 million in January.
Investment Strategy
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.
Impact of Coinbase’s Earnings Report
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.
Factors Contributing to Profit
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.
Coinbase has a history of releasing advertisements that challenge traditional societal norms.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
