Cathie Wood's Ark Invest buys $11.2 million in Coinbase stock amid dip-buying spree

• Cathie Wood's Ark Invest scooped up $11.2 million of Coinbase stock this week.
• As crypto turmoil weighs on the exchange, Coinbase shares are trading near all-time lows.

Cathie Wood's Ark Invest is on a dip-buying spree, adding a total of 296,578 Coinbase shares to the firm's exchange-traded funds this week. The purchase is valued around $11.2 million on Friday.

COIN is trading near all-time lows, with the company down 84.87% year-to-date. Ark Invest is one of the largest shareholders of Coinbase, according to Bloomberg data, holding a 4.3% stake as of September 30.

It's a tough time to be a publicly-traded crypto company. Coinbase CEO Brian Armstrong expects Coinbase's revenue to plunge at least 50% in 2022, the exec tweeted on December 7.

FTX contagion, along with a brutal prolonged bear market, continues to weigh on shareholder sentiment and user activity. Crypto markets are down more than two-thirds from record-highs, according to Messari, with both bitcoin and ethereum plunging 75% since the market's peak in November of 2021.

"Last year in 2021 we did about $7 billion of revenue and about $4 billion of positive EBITDA, and this year with everything coming down it's looking, you know, about roughly half that or less," Armstrong said in an interview on Bloomberg's David Rubenstein Show: Peer-to-Peer Conversations.

Ark's flagship exchange-traded fund, ARK Innovation ETF (ARKK), holds a total of 6 million COIN shares, valued around $231,347,118. The fund's Coinbase position comprises 3.44% of the fund. ARKK is down 60.39% year-to-date.

Wood said that companies in ARKK, however, are "sacrificing short-term profitability for exponential and highly profitable long term growth," according to the Wall Street Journal.

Ark Invest purchased 78,992 COIN shares last week as well, as the famed money manager keeps buying amid wider market turmoil, signalling Wood's continued bullishness on crypto regardless of market conditions.

After the collapse of Sam Bankman-Fried's once $32 billion crypto empire, FTX, Wood even doubled down on her prediction that bitcoin will hit $1 million by 2030, a staggering 6,000% increase from its current price.

"Sometimes you need to battle test, you need to go through crises... to see the survivors," she said in a Bloomberg interview. "We think bitcoin is coming out of this smelling like a rose."