ARK Invest’s Coinbase Stock Sell-off Approaches $200M as They Sell Significant Shares

ARK Invest, under the leadership of Cathie Wood, showcased its dynamic investment strategy in December, particularly with regards to its holdings in Coinbase (COIN). The forward-thinking investment firm continued to sell off COIN shares, accumulating sales amounting to a significant $196.8 million, despite a strong 30% rally since late November.

ARK Investment, while witnessing COIN’s value soar, opted for a strategic reduction in its exposure, in line with its policy of capping individual company holdings at around 10% of its overall portfolio. The ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) collectively shed 149,780 COIN shares, displaying a calculated approach to risk management and portfolio diversification. These sales amounted to a combined value of $24 million at Wednesday’s closing price.

ARKW also made another strategic move by divesting a significant portion of its holdings in the Grayscale Bitcoin Trust (GBTC), reducing its position by 398,383 shares. Simultaneously, they increased their holdings in Block (SQ) by acquiring an additional 158,334 shares. Block is a company that enables cryptocurrency payments through its Cash App and recently launched a self-controlled Bitcoin wallet.

Although the price difference between GBTC and its actual value experienced a slight increase of 0.33% on Wednesday, reaching 7.9%, it remains lower than the 12.5% recorded earlier this month. This difference is the smallest it has been since August 2021, according to data from Ycharts.