By acquiring additional Coinbase shares for $3.2 million, well-known tech investor Cathie Wood’s fund Ark Invest has increased its ownership of the cryptocurrency exchange.
As the effects of Sam Bankman-FTX Fried’s collapse spread, Coinbase share prices have plummeted to all-time lows, but Cathie Wood sees a buying opportunity.
The price of Coinbase shares, which ended Monday’s trading session at $41.23, is down around 20% from the previous week. The shares nearly hit $430 shortly after the exchange went public in April 2021; thus, this is a significant decline from that price.
According to Bloomberg statistics, Wood’s ARK Invest purchased almost 1.3 million shares this month alone, totalling approximately $53 million, despite the decline.
Approximately 8.4 million shares, or 4.7% of Coinbase’s outstanding stock, are now owned by the fund. Most of ARK Coinbase’s assets, which make up its 13th-largest position, are included in its flagship fund, the ARK Innovation ETF.
With the most recent acquisition, 5.8 million COIN shares, or about $228 million at the current price, are now held by ARK Innovation ETF (ARKK), the exchange-traded fund (ETF) that serves as Ark Invest’s flagship.
The action is seen as a signal that the renowned investor thinks the crypto market’s bottom may have already been reached and that there is value to be had in the present circumstances.
The well-known ETF from Ark Invest, recognized for being a significant holding of businesses like Tesla and Zoom, as well as bitcoin (BTC), has not had a good year in 2022. Due to the price declines of several of the fund’s top assets, ARKK has lost 64% of its value thus far this year.
Wood is still optimistic about the success of her chosen investments despite the poor year. Earlier this month, she tweeted that businesses that sacrifice short-term profitability for exponential and extremely profitable long-term development are “massively latently profitable.”
Wood reiterated her infamously bullish price forecast for bitcoin last month, stating that she thinks the leading cryptocurrency would reach $1 million by 2030.
“Yes, you know, sometimes you must go through crises and combat tests to see the survivors first, but indeed to fight test the infrastructure and the thesis. And once more, we believe bitcoin will emerge from this whole situation, ” Wood told Bloomberg.
As recently as this weekend, when she noted that the blockchain of Bitcoin “didn’t skip a beat” despite the demise of the multibillion-dollar exchange FTX, she once more hailed it as a network and a technology.
Tuesday’s Trading For Coinbase Is Down
COIN was worth $39.28 as of Wednesday morning, just before Wall Street trading began. Despite Wood’s acquisition, the stock fell 9.18% on Tuesday.
Cathie Wood remarked on a decision to sell certain Coinbase shares in August of this year, stating that there were regulatory issues around whether assets listed on the exchange would be considered securities at the time.