On November 9, Cathie Wood-led Ark Investments raised its Coinbase (COIN) holdings by purchasing 237,675 COIN shares worth approximately $12.1 million.

Ark Investment Management added 207,527 COIN share capital to its Innovation ETF (ARKK), 22,416 shares to its Next Generation Internet ETF (ARKW), and 7,732 shares to its Fintech Innovation ETF out of the 237,675 COIN shares (ARKF).

Coinbase stated in response to FTX's liquidity crisis that it has limited exposure to the now cash-strapped cryptocurrency trading platform with only $15 million on reserve to handle business operations and customer trades, prompting the tech-focused investment firm to make the purchase.

The platform also stated that it has no exposure to FTX's native token — which has dropped 84.08% since Binance revealed its decision to liquidate its entire FTT holdings late on November 7 — nor to its partner trading firm Alameda Research.

According to Owen Lau, a stock strategist at investment banking firm Oppenheimer, Wood's Nov. 9 purchase followed a 10.84% drop in COIN's share price on Nov. 8, which was an intended outcome following the FTX controversy.

It was also the investment firm's first trade for Coinbase since selling over 1.4 million COIN shares — worth $75 million at the time — across ARKK, ARKF, and ARKW on July 26. 2022.

The massive sell-off occurred in response to the U.S. The Securities and Exchange Commission (SEC) is investigating allegations that Coinbase engaged in insider trading of unauthorized securities.

However, Wood's latest buying spree has brought the company's COIN share count back up to 7.625 million, about one million shares less than its peak of 8.675 million on July 20. According to Cathie's Ark data, the year will be 2022.

Coinbase is now the 11th largest holding in Ark's main investment fund ARKK, accounting for 3.79% of the portfolio.

According to Yahoo Finance, COIN's stock rose 10.74% on Thursday, bringing its share price to $50.92.

Posted 
Nov 11, 2022
 in 
Crypto News
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