Cathie Wood's Ark Investment Management said in an email it bought 78,982 shares in cryptocurrency exchange Coinbase (COIN), its first investment in the crypto exchange in a month.
At Friday's closing price of $40.24 , the purchase would have cost about $3 million. The stock has been in a funk in recent months, and is down almost 60% from $98 in early August.
The purchase takes the ARK Innovation Exchange-Traded Fund's (ARKK) holding to 5.7 million COIN shares. That puts the purchase on the small side – increasing the ETF's exposure by 1.4%. It suggests the investment firm still sees bullish signs for the crypto sector, though may be opting for a cautious approach while the dust settles on a rocky period.
Coinbase CEO Brian Armstrong said last week the company's revenue this year would be at least 50% less than it was last year owing to the steep price drops in cryptocurrency prices and knock-on effects across the sector from multiple failures of large firms, such as rival exchange FTX.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.