On Monday, Cathie Wood-led Ark Invest adjusted its portfolio, notably selling shares of cryptocurrency-related companies such as Robinhood Markets Inc (NASDAQ:HOOD) and Coinbase Global Inc (NASDAQ:COIN), amidst a significant rally in Bitcoin (CRYPTO: BTC) which soared past the $56,000 mark. This decision comes at a time when the cryptocurrency market cap has surged past $2 trillion, highlighting a pivotal moment for investors.
The Coinbase Trade
Ark sold a total of 35,509 Coinbase shares through its flagship ARK Innovation ETF (NYSE:ARKK). The transaction was valued at $6.9 million. On Monday, Coinbase shares rallied 16.85% to $193.94 in regular trading and shot up another 1.8% in the after-hours trading.
Previously, ARK Invest CEO Wood praised Coinbase's fourth-quarter earnings, citing its regulatory compliance and competitive advantage. Despite earlier selling, Wall Street showed renewed interest after the earnings exceeded expectations, although Ark Invest subsequently sold a significant portion of its Coinbase holdings. She had said at the time that Coinbase was "in the right place at the right time."
The Robinhood Trade
The firm also sold 444,853 Robinhood shares through ARK Next Generation Internet ETF (NYSE:ARKW) and Ark Fintech Innovation ETF (NYSE:ARKF). That transaction was also valued at nearly $6.9 million. Robinhood shares closed 7.7% higher at $15.59 for the day.
Similarly, Ark Invest reduced its stake in Robinhood Markets Inc (NASDAQ:HOOD), a decision that comes on the heels of Robinhood's fourth-quarter earnings report, which showcased revenue and EPS beats alongside a strong start to the first quarter.
The Nvidia Trade
Ark Invest sold 2,724 through ARK Genomic Revolution ETF (BATS:ARKG) on Monday. That transaction was valued at $2.15 million. Nvidia stock edged up 0.35% higher at $790.92 for the day.
On Monday, Wood defended the sale of Nvidia shares, highlighting their early investment in 2014 when the company was undervalued as a PC gaming chip maker, resulting in significant profits. Despite Nvidia's recent surge, ARK continued to sell shares, explaining that they take profits after substantial gains.
Other Key Trades:
- Ark Invest increased its holdings in ROKU Inc (NASDAQ:ROKU), buying additional shares across multiple funds, signaling confidence in the digital media player's market position.
- The firm also showed interest in the biotech sector, purchasing shares of Veracyte Inc (NASDAQ:VCYT) and 10X Genomics Inc (NASDAQ:TXG), indicating a bullish stance on genomic and diagnostic technologies.
- Investments in Twist Bioscience Corp (NASDAQ:TWST) and Intellia Therapeutics Inc (NASDAQ:NTLA) were made, underscoring Ark's commitment to cutting-edge biotechnological research and development.