Cathie Wood's ARK Buys $21.6M Coinbase Shares as SEC Suit Sends Stock Tumbling

The purchase took ARK Invest's total Coinbase holdings to 11.44 million shares.

AccessTimeIconJun 7, 2023 at 6:57 a.m. UTC
Updated Jun 7, 2023 at 2:55 p.m. UTC

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 U.S. Securities and Exchange Exchange sued the only publicly traded crypto exchange sending share prices tumbling.

ARK bought 419,324 shares of Coinbase, worth around $21.6 million based on Tuesday's closing price of $51.61. The buy was split across ARK's Innovation ETF (NYSE:ARKK), the Next Generation Internet ETF (NYSE:ARKW), and the Fintech Innovation ETF (NYSE:ARKF).

The purchase, the first since May 3, took Ark’s total Coinbase holdings to 11.44 million shares, valuing the position at around $590 million.

The SEC sued Coinbase on allegations of violating federal securities law just one day after filing a similar suit against Binance. According to the SEC, Coinbase acted as a broker, exchange and clearing agency simultaneously without registering as any such organization.

Coinbase's stock was down over 12% at the end of U.S. trading hours on Tuesday. Year-to-date, COIN is still up over 50%.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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; 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 employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sheldon Reback

Sheldon Reback is a CoinDesk news editor based in London. He owns a small amount of ether.