Ark Invest's Cathie Wood is buying more Coinbase (COIN) shares amid a downward spiral in cryptocurrency prices.
The founder of Ark Invest bought $38 million worth of Coinbase shares in various funds on Wednesday after shares in the cryptocurrency exchange fell 6 per cent during the Bitcoin rout. Wood bought at Coinbase's closing price of $224.80 a share on Wednesday.
The purchase comes after Wood bought $90 million of Coinbase shares through the fund on Monday and Tuesday.
Coinbase shares were down 13 per cent this week and nearly 25 per cent this month as of Wednesday's close because of significant selling pressure on Bitcoin prices. At one point, Bitcoin fell more than 30% in Wednesday's trading. Coinbase also had technical problems. The digital asset is currently worth about $41575, according to Coin Metrics.
Coinbase--, founded in 2012, is a platform to simplify buying bitcoin-it entered the US stock market as IPO last month.
Ark Innovation Ark Innovation--Wood 's flagship fund-bought a total of 133848 shares of Coinbase shares, Ark next-generation Internet Ark Next Generation Internet ETF bought a total of 35382 shares of Coinbase shares. Coinbase is Ark Innovation's 11th largest shareholder, accounting for about 3.17% of the ETF.
The stock closed up 3.83% on Thursday, closing at $233.4.
Wood, known for its disruptive investment options for innovation, is not the only one on Wall Street who supports Coinbase. Wedbush launched a report on the stock on Wednesday and gave it an "outperform" rating, saying Bitcoin volatility should not scare investors away from Coinbase's strong underlying business.
Piper Sandler has an overweight rating and believes that "despite recent fluctuations, the long-term story of Coinbase remains intact".
Wood also bought about $39 million of Tesla at $563.46 per share in various funds on Wednesday.(TSLA) stock. The electric car maker's shares fell 2.5% on Wednesday, but rose 4.14 on Thursday to close at $586.
Tesla is a big holder of bitcoin, but chief executive Musk announced last week that the company would stop accepting bitcoin payments because of environmental problems surrounding cryptocurrency mining. This surprised people and is one of the reasons why the cryptocurrency has fallen in the past month. (Chinese Investment Network)