Cathie Wood is buying the dip in Coinbase, adding $53 million this month as the FTX collapse pressures the crypto industry
- Cathie Wood's ARK Invest bought over 1.3 million shares of Coinbase this month, per Bloomberg.
- Coinbase is trading near record lows of about $41 per share, down from a high of $429 in April 2021.
Coinbase shares have plunged to all-time low as the fallout from Sam Bankman-Fried's FTX collapse spreads, but Cathie Wood is seeing a buying opportunity.
Coinbase stock is down roughly 20% over the last week, closing Monday's trading session at $41.23. That's a far cry from the nearly $430 the shares reached shortly after the exchange went public in April 2021.
Amid the plunge, Wood's ARK Invest has bought over 1.3 million shares this month alone, worth about $53 million, according to Bloomberg data.
That brings the fund's total stake to about 8.4 million shares, or about 4.7% of Coinbase's total outstanding shares. The majority of ARK Coinbase holdings are part of its flagship fund, ARK Innovation ETF, making up its 13th largest position.
Wood has been a longstanding bitcoin bull, even amid the crypto bear market and souring sentiment from other Wall Street players. Analysts from Bank of America and Daiwa Securities downgraded Coinbase stock this month, and the company now has its fewest 'buy' recommendations in over a year.
Both Coinbase and Silvergate Capital have lost more than 80% in 2022. Grayscale has shed about 76%.
- I'm a 56-year-old IT worker who got laid off last year and have been unemployed ever since. I have a hunch I'm not finding work due to ageism. How do I prove it?
- Live your life American Express’ Platinum way: Exceptional privileges, rewards and experiences
- Germany relaxes Schengen visa rules for Indians
- WhatsApp rolls out contact cards sharing on Windows beta
- FIFA WC: Lionel Messi doing well, says Argentina manager Scaloni amid injury concerns
- ADB, Wabag sign USD 25 mn debt facility for sanitation, water security in India
- RBI pauses onboarding of online merchants by Paytm Payments Services; firm says no material impact on biz
- Over 50% of microbusinesses had no mechanisms to cushion Covid impact, Road to Recovery report says