Cathie Wood’s ARK Invest has taken advantage of the bear market and bought over a million shares of Coinbase this month.
ARK Buys Coinbase Shares
Prominent investor Cathie Wood is not running scared by the recent market turmoil. With the FTX contagion spreading, many investors and firms are considering pulling out of their crypto positions. As a result, stocks have suffered significantly. For example, Coinbase shares have plummeted to an all-time low after dropping roughly 20% in just the last week. When the exchange went public in April 2021, the price of each share was $430. Last Monday, it closed out the trading session at a mere $41.23. Analysts from Bank of America and Daiwa Securities downgraded Coinbase stock this month, and the company now has its fewest ‘buy’ recommendations in over a year.
However, for ARK Invest CEO Cathie Wood, the dropping stock values have presented a unique investment opportunity. In the month of November, Wood’s company bought over 1.3 million shares in Coinbase. The total value of these shares is around $53 million. As of now, ARK Invest holds 8.4 million shares, which is around 4.7% of Coinbase’s total outstanding shares. The company holds most of its Coinbase shares in its flagship fund, ARK Innovation ETF.
Wood has not stuck to Coinbase shares only. So far in November, ARK Invest has been purchasing shares of Grayscale’s Bitcoin ETF, Grayscale Bitcoin Trust (GBTC) and crypto bank Silvergate Capital. Both firms have suffered in the 2022 bear market. Grayscale lost around 76% of its valuation in 2022, while Silvergate has lost 80%. However, this did not deter Wood from making big purchases. Just last week, ARK Invest purchased around 315,000 GBTC shares worth $2.8 million. This latest purchase has upped ARK’s GBTC holdings to nearly 6.357 million, representing 0.4% of the firm’s total investments.
Wood’s Prediction – Will BTC Hit $1M?
Wood has been a strong proponent of Bitcoin. Earlier this year, before the first blow of 2022, i.e., the collapse of the Terra ecosystem, Wood had predicted that BTC price would reach a million dollars by 2030. However, the crypto’s price back then was $41,000. It has taken a severe beating since then owing to the market inflation, crypto winter, the crash of the Terra ecosystem, and the subsequent FTX debacle. Currently, it is priced at a meager $16,442, significantly lower than its all-time high of $68,789 a year back.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.