On Wednesday, Cathie Wood-led Ark Invest made a significant move by selling over $6 million worth of Coinbase Global Inc (NASDAQ:COIN) shares, amidst a backdrop of nearly $1 billion in Bitcoin (CRYPTO: BTC) withdrawals that left Coinbase with its lowest reserve since 2015.
The Coinbase Trade
The firm sold 40,683 shares through ARK Innovation ETF (NYSE:ARKK) and Ark Fintech Innovation ETF (NYSE:ARKF) on Wednesday. The transaction was valued at $6.6 million. Coinbase shares closed 6.28% for the day at $162.41. In the after-hours trading, the shares rose 5.6% to $168.
Concerning the significant withdrawals of Bitcoin from Coinbase on the day, the exchange is now left holding 390,000 BTC, equivalent to approximately $20 billion, marking the lowest Bitcoin reserve level for Coinbase since 2015.
However, there's no significant cause for concern as these funds are likely being transferred to establish new custodial wallets or support over-the-counter transactions, according to a prior report.
Wednesday's share sale by Ark occurred after Coinbase's Q4 earnings outperformed market expectations, showcasing a surprise profit that had previously bolstered investor confidence. Cathie Wood herself has remarked on Coinbase's strategic positioning, suggesting that the company is "in the right place at the right time," despite another recent sale of shares by her firm.
Other Key Trades:
- SOFI Technologies Inc (NASDAQ:SOFI) saw a significant buy from Ark, with 656,874 shares purchased, indicating a bullish stance on the financial services platform.
- 10X Genomics Inc (NASDAQ:TXG) also received a notable investment, with Ark buying 64,418 shares, underscoring the firm's interest in cutting-edge genomic sequencing technology.
- The investment in Unity Software Inc (NYSE:U) shares reflects Ark's confidence in the development platform's growth potential in gaming and beyond.
- Archer Aviation Inc (NYSE:ACHR) was another focus, with 243,028 shares bought, highlighting Ark's investment in the future of air mobility.
Photo Courtesy: Ark Invest