Selling a modest piece of ARK Invest’s Coinbase stock has allowed Cathie Wood to profit from the company’s holdings.
The decision to sell a tiny amount of ARK Invest’s Coinbase assets was made by Cathie Wood, a well-known pro-Bitcoin investing veteran, in order to realize some gains from the investment. On July 11, ARK sold 12 million worth of Coinbase shares from its ARK Innovation ETF, totaling 135,152 shares, or 0.14% of the fund’s holdings.
This transaction occurs as the price of Coinbase shares has recently increased significantly. On July 11, the cost surged from about $82 to as high as $90.9 for a brief period of time. The stock’s Tuesday closing price was $89 following Wood’s sell.
According to TradingView statistics, the price of Coinbase stock has increased by over 60% in the last month and by over 140% year to date.
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Related: Cathie Wood’s ARK sells Coinbase stock for the first time in 2023
This is ARK’s second profit-taking from its Coinbase shares this year. For $13.5 million, or about $84 per share, the company sold 160,887 Coinbase shares from its ARK Fintech Innovation ETF on March 21.
Wood’s investment company has been actively acquiring the stock in several ARK funds prior to generating profits from ARK’s Coinbase holdings. ARK bought shares of Coinbase worth almost $40 million in June alone. Previously, the company had purchased shares worth about $33 million in April and May and $117 million in March.
Notably, as the price has increased recently, some Coinbase executives, including CEO Brian Armstrong, have also started selling their shares. Armstrong and other top executives sold a total of 88,058 shares on July 6 for a combined total of nearly $6.9 million at the time. Jennifer Jones, the chief accounting officer at Coinbase, also sold 74,375 shares on June 29 for a profit of $5.2 million.
Even though the exchange is being sued by the US Securities and Exchange Commission (SEC) for securities violations, the value of Coinbase stock has increased. The growth may be due to apprehension over missing out on BlackRock’s spot Bitcoin ETF registration, which named Coinbase as a “surveillance-sharing” partner and designated Coinbase as such.
Related: Coinbase Shares Up 50% despite SEC Lawsuit
Cathie’s choice to sell some of ARK’s Coinbase holdings demonstrates how she manages her portfolio positions and takes advantage of market opportunities. It also emphasizes how dynamic the bitcoin market is, where stock prices can change significantly even in the face of governmental obstacles.