Ark Invest Is Dumping Large Amounts of Coinbase (COIN) Stock, Here’s Why

The recent batch of dumping Coinbase (COIN) shares has been the largest from Ark Invest in 2023. COIN stock price is around a new yearly high of $140.

Cathie Wood’s asset management firm Ark Invest has been liquidating its Coinbase Global Inc (NASDAQ: COIN) stock holdings in big numbers recently. On December 5, ARK executed the sale of up to 237,572 Coinbase shares across its three funds, as indicated by a trade notification.

The transaction occurred when Coinbase’s stock closed at $140 per share, resulting in a minimum revenue of $33 million. The ARK Innovation ETF (ARKK) led the divestment with 201,711 shares, while the ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) contributed 28,535 COIN and 7,326 COIN, respectively.

Coinbase’s stock is achieving new annual peaks, reflecting the positive momentum in the cryptocurrency market, with a remarkable year-to-date surge of 280%, as indicated by TradingView data. The rally of COIN shares has been notably influenced by recent developments involving its competitor, Binance, and its former CEO Changpeng Zhao. In November, Binance pleaded guilty to money laundering and sanctions violations in the United States, contributing to the upward trajectory of Coinbase’s stock.

On December 5, Coinbase’s stock attained a fresh record high, surpassing $147.4, a level not witnessed since April 2022. Over the last 30 days, the stock has witnessed a substantial increase of nearly 70%, underscoring its robust performance, according to data from TradingView.

ARK’s recent sale of Coinbase shares stands out as one of its most substantial daily disposals in 2023, ranking third in size compared to the significant 478,356 COIN sale on July 14 and the 248,838 COIN sale on July 17. It’s worth noting that during those previous sales, Coinbase stock was trading at approximately $105.

Ark Invest Is Also Selling GBTC Shares

In addition to the notable Coinbase stock sales, ARK has liquidated 168,127 shares of Grayscale’s Bitcoin Investment Trust (GBTC), yielding $5.9 million at the closing price of $35, as per TradingView. This selling spree commenced on October 23, 2023, coinciding with Bitcoin’s movement toward the $34,000 mark.

Despite the recent wave of Coinbase stock sales, ARK maintains a substantial holding of COIN shares, constituting a significant portion of its top assets. Coinbase continues to dominate the portfolio of the ARKF ETF, making up over 13% of its net assets, valued at nearly $135 million as of December 5.

COIN also holds substantial weight in the ARKW ETF and the ARKK ETF, representing 11.72% and 11.64%, respectively, serving as the largest asset in both portfolios.

While divesting from Coinbase, ARK has actively engaged in purchasing other cryptocurrency-related stocks, such as Robinhood (HOOD). Additionally, the firm has persisted in acquiring shares of SoFi Technologies, even following the announcement of the impending cessation of crypto trading services.

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