Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million
Cathie Wood has rebalanced the company's portfolio in favor of cryptocurrency stocks, yet again.
ARK funds bought 187,078 shares of Coinbase on Friday, adding to the 341,186 shares purchased on Thursday and 749,205 purchased on Wednesday. In total, Wood’s fund has 1,277,469 COIN shares worth almost $437 million at Friday’s closing price of $342.
The funds added to were the flagship ARK Innovation fund, the Next Generation Internet ETF, and the Fintech Innovation ETF.
Separately, it yet again sold 134,541 shares of electric car maker Tesla, valued at $99.5 million, from its flagship fund and Next Generation Internet ETF, but still, TSLA remains by far the firm’s biggest position by value on its major funds.
This big bet on Coinbase gives ARK more indirect exposure to cryptos on top of Tesla, which announced a $1.5 billion investment in Bitcoin this year and started accepting cryptos as payment for its cars.
Founded in 2014, Ark invests in companies involved with disrupting trends.
While up 6.6% from Thursday closing prices, COIN share prices it is still down 21% from its debut peak of almost $430, about 42% above the reference price of $250.
The uptrend in share prices came as the price of Bitcoin recovered after falling to $60,000, and Loop Capital Markets analyst Kenneth Hill advised clients to buy shares of the largest crypto exchange in the US. BTC -0.03% Bitcoin / USD BTCUSD $ 48,974.41
-$14.69-0.03% Volume 36.32 b Change -$14.69 Open $48,974.41 Circulating 18.89 m Market Cap 925.25 b 1 d Bitcoin A Smart Hedge For Investors, says Chairman of $100 Billion Starwood Capital Group 1 d Bitcoin Miners HODLing: Marathon Mines 53% Less BTC in Nov., Hut 8 Producing Each BTC at A Cost of $3k 1 d Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019
The latest analyst to call for buy highlighted “lots of runways” for the company ahead of a “takeoff.”
“Coinbase’s market valuation may seem excessive to some given the prospects of increased competition in digital wallets business, which should rapidly eat into Coinbase’s sweet profit margins,” Ipek Ozkardeskaya, senior analyst at Swissquote, told Bloomberg.
“On the other hand, the competition is not here yet, while large trading volumes continue boosting Coinbase’s revenues for the moment.”
Besides the funds, retail traders also jumped in on COIN. Day traders purchased a net $57 million of shares during the debut on the Nasdaq Stock Market, as per VandaTrack.
Retail accounted for 7% of the $822 million individuals spent on all US stocks and ETFs on the day, making Coinbase the fifth-most popular debut with day traders since 2017.
Coinbase was also the most traded stock on Fidelity’s platform on the day, with over 148,000 shares changing hands, nearly 9x more than Tesla.
The exchange going public has been seen as a watershed moment for the crypto industry, taking it further into the mainstream.
Coinbase CEO Brian Armstrong called this direct listing a “shift in legitimacy” for the entire industry.
“Crypto has a shot at being a major force in the financial world.”