- Ark Invest, the investment management firm led by Cathie Wood, recently increased its stake in Coinbase (COIN) by purchasing more shares.
- Despite the challenging conditions in the cryptocurrency market, including market volatility, regulatory scrutiny in the United States, and industry bankruptcies, Ark Invest has maintained its buying activity for Coinbase.
Ark Invest, the investment management firm led by Cathie Wood, recently increased its stake in Coinbase (COIN) by purchasing more shares. This decision came as the stock price of Coinbase experienced a decline following the announcement of a lawsuit by the US Securities and Exchange Commission (SEC) against the exchange for alleged violations of securities laws.
Despite the challenging conditions in the cryptocurrency market, including market volatility, regulatory scrutiny in the United States, and industry bankruptcies, Ark Invest has maintained its buying activity for Coinbase. As the fourth-largest holder of Coinbase shares, the firm has been consistently adding to its position since last year.
Cathie Wood’s Ark Invest Seizes Opportunity, Buys the Dip
CoinGape reported that on June 6, transactions revealed that Ark Invest funds purchased a total of 419,324 shares of Coinbase (COIN) for approximately $21 million. This buying activity occurred as the price of COIN dipped below $50.
Within the Ark Invest portfolio, Cathie Wood’s firm bought 329,773 COIN shares for the ARK Innovation ETF (ARKK), 53,885 shares for the ARK Next Generation Internet ETF (ARKW), and 35,666 shares for the ARK Fintech Innovation ETF (ARKF).
Ark Invest has been accumulating Coinbase stocks since last year, and as of March 31, Cathie Wood’s firm held over 12 million COIN shares. Wood has expressed optimism about Bitcoin and has reiterated her price target of $1 million for Bitcoin by 2030.
On Tuesday, the US Securities and Exchange Commission (SEC) filed charges against Coinbase, alleging that the exchange operated as an unregistered securities exchange, broker, and clearing agency. Coinbase also received show cause notices from state securities regulators in California, Alabama, New Jersey, and several other states.
The SEC’s lawsuit against Coinbase includes allegations that SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO are considered securities.
In addition to Coinbase, the SEC also filed a lawsuit on Monday against Binance, the world’s largest exchange, along with its US arm Binance.US and CEO Changpeng “CZ” Zhao. The charges include operating unregistered securities exchanges, misleading investors, and selling unregistered securities, totaling 13 charges in total.
Market Optimism Ignites Coinbase Stock Rally
Following the announcement of the SEC lawsuit against Coinbase (COIN), the stock price experienced a significant decline, dropping by 21% to reach a low of $46 on Tuesday. However, the price managed to recover throughout the day and closed at $51.61.
The buying activity of investors, including Ark Invest, during the dip in Coinbase shares played a role in boosting the COIN price, resulting in a nearly 3% jump. After the market closed, COIN price continued to rise and is currently trading at $52.75, showing a 2% increase.
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