Ark Invest Buys $21.6 Million Worth of Coinbase Shares Despite Legal Drama

Despite the legal drama and price dip, Cathie Wood’s Ark Invest bought Coinbase shares worth millions yesterday. A day back, the SEC sued Coinbase on account of violating U.S. security laws. The regulator contended that...

The same day ARK Invest bought more than $21 million worth of Coinbase shares, stock prices for the exchange plummeted by 20% following the lawsuit issued by the SEC. But that didn't deter Cathie Wood.

Cathie Wood’s Ark Investment Management, the second-largest holder of Coinbase Global (COIN) stock, doubled down on its investment in the crypto exchange after the SEC announcement. The Ark's flagship exchange-traded fund, Ark Innovation ETF, purchased 329,773 shares of Coinbase, according to an update from the fund manager's trading desk on Tuesday. In batches of 329.7k, 53.8k, and 35.6k, Ark Invest conducted the transaction.

Using the stock closing price of about $52 per share, the total Coinbase shares that Ark Invest bought were worth $21.64 million. This bold move underscores Ark Invest's continued faith in Coinbase's long-term potential, even amidst regulatory uncertainty. On Monday, Ark Invest sold approximately $5.3 million worth of Coinbase stock, totaling 43,956 shares. The sale comes as Coinbase's stock hit a peak of $121.67, a notable price point that may have influenced the decision to rebalance the portfolio.