An investment firm associated with Cathie Wood confirmed offloading Coinbase shares following the stock’s rally to an all-time high in 2023. The bitcoin advocate divested additional Coinbase shares as the stock price realized its highest exchange value in a 52-week run.
Ark Invest is divesting Coinbase shares in an active swap approach to invest in Robinhood Markets (HOOD) and Meta Platforms (META).
The investment management firm, steered by Cathi Wood, devoted itself to acquiring a substantial number of Coinbase shares during the prolonged bear market. The sale executed on Friday, July 14, marked the second instance this week the firm was offloading a portion of the holdings at the US largest crypto exchange by transaction volume.
Wood’s Ark Pursue Profit as Coinbase Stock Price Rally
A review of the July 14 events shows that Wood’s Ark Invest funds offloaded 478356 Coinbase (COIN) shares to yield $53 million. The funds divested the holding when the stock realized a yearly high at $114.43. The sale occurs when Cathie Wood appears to switch focus to actively pursue alternative shares projected to kickstart a long bullish momentum.
A comprehensive review of the July 14 transactions shows the Bitcoin advocate’s flagship fund executed the largest sale. In particular, ARK Innovation ETF (ARKK) offloaded 263247 COIN shares. Wood’s divestment spread across other funds with ARK Fintech Innovation ETF (ARKF) involved in selling 35666 COIN shares. ARK Next Generation Internet ETF (ARKW) offloaded the second largest holding of the funds by selling 93227 COIN shares.
The move by Cathie Wood’s firm to offload the COIN shares portrays a calculated move to secure profits in a week when the crypto exchange share rallied the highest. A review of the CoinMarketCap shows the COIN stock rallied 33% earlier to test a day’s high of $114.43. The uptrend prompted investors to leverage the 213% year-to-date increment to secure profits.
Coinbase stock rose in the optimism of replicating the upswing other crypto-related stocks experienced following the notable ruling in the SEC v. Ripple lawsuit delivered by Judge Analisa Torres. The summary judgment indicated that XRP offered to the public was not a security unless when offered to institutional investors.
The ruling by the Southern District of New York Court judge triggered the XRP-led boom that propelled Coinbase to its 52-week high. It triggered speculation of Coinbase’s win in the lawsuit initiated by the SEC alleging it offered unregistered security to American citizens. However, the COIN stock would correct the price with a mild 1.58% slip to close at $105.31, as illustrated by CoinmMarketCap.
As an aggressive investor, Cathie Wood leveraged the upswing witnessed across the crypto-affiliated platform to secure the profit. The sale came 72 hours apart from the Tuesday, July 11 transaction when Ark Innovation ETF (ARKK) offloaded 135,152 Coinbase shares to earn $12 million. The transaction involved 0.14% holding of the Coinbase shares.
Revisiting the July 11 and March Sale of Coinbase Stock
The July 11 sale allowed Wood’s Ark to take profits given the sharp price increase from $82 to test $90.0, as per TradingView. The stock would close the Tuesday market at $89. TradingView data indicated that Coinbase stock rose by over 60% in the previous month. The day’s price indicated the Coinbase stock had, by July 11, accomplished 140% year-to-date growth.
Earlier on March 21, Wood’s ARK Fintech Innovation ETF (ARKF) disposed of 160,887 Coinbase (COIN) shares to raise $13.5 million from its $84 exchange value.
Before this week’s sales, Wood was devoted to accumulating Coinbase stock. ARK acquisitions in June were estimated at $40 million, with another $33 million spent in April and May. Wood earlier acquired Coinbase shares in March, valued at $117 million.
Wood’s Ark Invest Shifts Focus to Robinhood and Meta Platforms
The move by Ark Invest to pursue profit by selling Coinbase occurred when Wood initiated the acquisition of Meta Platforms shares. ARK Innovation ETF purchased 69793 META shares following the June announcement of unveiling Threads to rival Twitter’s social media application.
Further June acquisitions involving ARK Fintech Innovation ETF (ARKF) bought 111,843 shares of Robinhood. Also, ARK Next Generation Internet ETF (ARKW) would raise holdings with 169,116 Robinhood shares and 12,559 META shares. The move to swap Coinbase stock for Meta Platforms and Robinhood shares is a notable development in tracking the overall conduct of respective price movements.
Editorial credit: Iryna Budanova / Shutterstock.com