Cathie Wood's Ark Invest scoops up $1.45 million of Coinbase stock as the crypto exchange pops 25% in the past five days
Coinbase shares jumped 20% on Tuesday after the crypto exchange announced 20% layoffs amid a lengthy bear market.
Rebecca Blackwell/AP Photo
- Cathie Wood's Ark Invest bought 33,756 shares of crypto exchange Coinbase.
- COIN is up nearly 25% in the past five days following company-wide layoffs.
- The famed money manager's ARKK ETF is down 65% in the past year.
Cathie Wood's Ark Investment Management is on a Coinbase buying spree, scooping up more of the crypto exchange's shares amid a lengthy bear market for digital assets.
The famed money manager on Tuesday added 33,756 shares to ARK's Innovation ETF (ARKK), worth around $1.45 million based on the last closing price.
The purchase continues an aggressive stance on Coinbase. In one week last month, Ark Invest added a total of 296,578 Coinbase shares to the firm's exchange-traded funds. That followed the purchase of 78,992 shares in the week prior to that.
Wood's fund is one Coinbase's biggest shareholders, with a 4.3% stake in the company as of late September, according to data from Bloomberg.
Meanwhile, COIN is up nearly 25% in the past five days, trading at $43.23 on Wednesday. Coinbase stock popped 20% on Tuesday after the company announced that it planned on cutting 20% of its workforce.
"We are encouraged by this morning's news, as it shows the company is taking financial discipline seriously in a very challenging crypto/macro environment," analysts from Barclays wrote in a note.
Although COIN has experienced an uptick in share price recently, the crypto company has faced several headwinds since 2022. The firm cut 18% of its employees in June as well.
Coinbase shares plunged 82% in the past year as crypto markets continue to take hits, ranging from decades-high inflation to a slew of bankruptcy filings from the industry's biggest players like FTX and Three Arrows Capital.
Ark Invest continues to show its long-standing conviction for both Coinbase and crypto despite market turmoil. ARKK is down 65% in the past year.
In an interview with Bloomberg after FTX filed for bankruptcy, Wood doubled down on her prediction that bitcoin will hit $1 million by 2030, a price increase of 5,650% from the token's current trading levels. She added that the crypto will come out of the bear market smelling like a "rose."