Cathie Wood Led Ark Invest Bought Coinbase Shares Worth $20.6 Million

• More than 350,000 Coinbase shares were purchased in a single day by the company.
• Shares of Coinbase fell by over 8% on Thursday as the crypto market was trading in red.

According to a transaction report provided to investors, prominent growth investor Cathie Wood’s Ark Invest purchased more shares of cryptocurrency exchange Coinbase (COIN) on Thursday than it had in all of January.

More than 350,000 Coinbase shares were purchased in a single day by the company, making it the largest single-day purchase in 2023. The shares were distributed between the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW). It purchased 333,637 shares in January.

At Thursday’s closing price, the transaction is worth $20.6 million, bringing Ark’s total purchase of shares this month to over 566,000, or more than three-quarters of the quantity the company purchased in February.

Buying the Dip

Shares of Coinbase fell by over 8% on Thursday as the cryptocurrency market as a whole experienced red as the market felt the aftershocks of the collapse of Silvergate Bank, a bank that specialized in cryptocurrency. Prices for both bitcoin (BTC) and ether (ETH) have dropped by over 8% in the last day.

On Thursday’s closing price of $58.09, Ark’s 9.9 million shares of Coinbase were valued at $575 million. According to Nasdaq, Coinbase is worth just under $15.1 billion, making Ark the exchange’s third-largest shareholder with a 3.8% stake. On Friday morning, the stock price was $57.49, down almost 1% from the previous trading day.

On the other hand, New York’s Attorney General Letitia James has declared that she is suing KuCoin because she was able to purchase and sell cryptocurrencies on the exchange despite the fact that it is not registered in New York. More allegations were mentioned in the lawsuit as authorities’ crackdown on the sector is catching pace.

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