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ARK Invest Sells $14.8 Million in Coinbase Shares Ahead of Earnings Report
ARK Invest has divested $14.8 million in Coinbase shares just before the company’s earnings report. Explore the implications of this significant move by the investment firm and what it could mean for the future of Coinbase.
In a significant move, Cathie Wood’s investment firm, ARK Invest, divested $14.8 million worth of shares in the cryptocurrency exchange Coinbase (COIN) on Thursday. This marked the largest single-day sale since May 7, strategically occurring just before the exchange’s highly anticipated second-quarter earnings announcement.
This recent divestment indicates that ARK Invest sold more Coinbase shares on the first day of August than in the entirety of the previous two months combined. Specifically, the firm had offloaded $2.88 million worth of shares in June and $7.93 million in July.
After the market closed, Coinbase reported second-quarter revenue that surpassed Wall Street analysts’ expectations, although profit figures fell short of the consensus. During regular trading, the exchange’s shares experienced a decline of 5.2%, settling at $212.64. However, there was a brief rally following the earnings report, and the shares remained relatively stable in pre-market trading.
ARK Invest sold a total of 69,069 shares of COIN across its two primary exchange-traded funds: the Next Generation Internet ETF (ARKW) and the Fintech Innovation ETF (ARKF). It’s important to note that ARK’s share sales are often driven by the need to adhere to its internal exposure guidelines, which stipulate that no single holding should constitute more than 10% of an ETF’s total weighting. Currently, COIN accounts for 6.74% of ARKW and 9.69% of ARKF.