Ark Invest has significantly increased its stake in Coinbase, purchasing approximately $6.9 million worth of shares across three of its exchange-traded funds. This move signals renewed confidence in the cryptocurrency exchange, reversing earlier sales made in February during a downturn in crypto equities.
The firm acquired 41,453 Coinbase shares. The ARK Innovation ETF (ARKK) received the largest allocation with 29,689 shares, followed by the ARK Next Generation Internet ETF (ARKW) with 7,525 shares, and the ARK Fintech Innovation ETF (ARKF) with 4,239 shares.
This latest purchase contrasts with Ark's strategy earlier in February, when it sold a combined 119,236 Coinbase shares valued at roughly $17.4 million. At that time, Ark had redirected capital into crypto exchange Bullish amidst market volatility.
Despite recent quarterly earnings showing a net loss of $667 million, largely due to unrealized losses on its crypto investment portfolio, Coinbase shares have shown resilience. The stock closed 1% higher recently and has gained 8.4% over the past five trading days, though it remains down year-to-date.
Analysts maintain an optimistic outlook. Bernstein analysts have issued an outperform rating and a price target of $440, citing Coinbase's strong long-term positioning in the digital asset infrastructure space. Ark Invest's continued support, even amid market fluctuations and regulatory changes, underscores a belief in Coinbase's potential for a rebound.