ARK Invest, led by prominent Bitcoin advocate Cathie Wood, has sold a significant portion of its Coinbase stock ahead of the exchange’s strong earnings report.
According to a filing on Thursday, ARK Invest divested $34.3 million worth of Coinbase shares from three of its funds: ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW).
This marks the first time since January 11 that ARK Invest has sold some of its Coinbase holdings, coinciding with a surge in Coinbase’s stock price, which rose 11% in after-hours trading following the release of its earnings report.
ARK Invest, currently the second-largest holder of Coinbase stock, has made significant sales of Coinbase shares in recent months. In December of last year, they sold $49.2 million worth of shares, marking one of their largest sales since July. In March last year, they sold 160,887 shares valued at $13.5 million.
The firm continued its selling spree this year, with 166,183 shares sold in January, amounting to $25.3 million.
Cathie Wood, known for her bullish stance on Bitcoin and cryptocurrencies, has been a prominent figure in the crypto space. While the decision to sell Coinbase shares might raise eyebrows among investors, ARK Invest maintains a dynamic investment strategy, adjusting its portfolio based on market conditions and the firm’s outlook.
Coinbase reported a quarterly profit of $273.4 million for the fourth quarter of 2023, compared to a loss of $557 million during the same period the previous year. The profit comes after the U.S. Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds (ETFs), leading to increased interest in the cryptocurrency market.
Coinbase attributed its return to profitability to the surge in cryptocurrency prices and increased interest in its USD Coin (USDC) product, which allows users to earn rewards by holding the stablecoin on its platform.
Recently, Coinbase unveiled a new television ad mocking traditional United States fiat currency, symbolizing the need for a digital upgrade to replace outdated physical currency. This is in line with their history of releasing advertisements challenging traditional societal norms, aiming to debunk misconceptions surrounding cryptocurrency.