ARK Invest, the investment management firm led by Cathie Wood, recently divested 580,000 Coinbase (COIN) shares.
The transaction, valued at $149.85 million based on Friday’s closing price, underscores the company’s strategic investment decisions.
This sale represents ARK’s second-largest weekly offload of COIN shares since July 2023. The previous record was set during the week ending February 16, when ARK sold shares worth $151 million.
ARK’s commitment to maintaining a balanced portfolio drove the decision to sell. As part of its strategy, ARK aims to prevent any individual holding from exceeding a 10% weighting of an ETF’s total value. Large sell-offs become necessary when an asset experiences rapid appreciation, such as the recent surge in Bitcoin’s price.
Despite the substantial sale, COIN’s weighting across ARK’s three ETFs – Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF) – remains comfortably above the 10% threshold. Investors can expect further sales from ARK, especially after Bitcoin recently hit a new all-time high above $72,000.
Meanwhile, Coinbase shares have been on an upward trajectory, gaining over 80% in value in the past month alone. This surge is closely tied to the nearly 50% rally in Bitcoin’s price during the same period. Coinbase (COIN) also experienced a surge following its fourth-quarter earnings report, where it exceeded analysts’ expectations and showcased its strong performance amidst the crypto rally.
Based on a Q4 report released last month, the company exceeded expectations in terms of earnings and revenue. According to FactSet data, earnings stood at $1.04 per share, surpassing the average analyst estimate of $0.02 per share. Revenue reached $953.8 million, surpassing the analyst forecast of $826.1 million. This strong performance resulted in a 13% surge in COIN shares during post-market trading, adding to a 3% gain in the regular session.
Alongside beating earnings estimates, Coinbase posted a 2023 adjusted EBITDA of $964 million and anticipates generating $410 million to $480 million in subscription and service revenue in the first quarter of 2024. The company’s ETFs have also invigorated the sector, leading to increased activity and engagement on the platform.
The post Why Did ARK Invest Sell $150M Coinbase (COIN) Shares in a Week? appeared first on CryptoPotato.
The transaction, valued at $149.85 million based on Friday’s closing price, underscores the company’s strategic investment decisions.
Second-Largest Offload Since 2023
This sale represents ARK’s second-largest weekly offload of COIN shares since July 2023. The previous record was set during the week ending February 16, when ARK sold shares worth $151 million.
ARK’s commitment to maintaining a balanced portfolio drove the decision to sell. As part of its strategy, ARK aims to prevent any individual holding from exceeding a 10% weighting of an ETF’s total value. Large sell-offs become necessary when an asset experiences rapid appreciation, such as the recent surge in Bitcoin’s price.
Despite the substantial sale, COIN’s weighting across ARK’s three ETFs – Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF) – remains comfortably above the 10% threshold. Investors can expect further sales from ARK, especially after Bitcoin recently hit a new all-time high above $72,000.
Coinbase Shares Soar Over 80% Amid Crypto Rally
Meanwhile, Coinbase shares have been on an upward trajectory, gaining over 80% in value in the past month alone. This surge is closely tied to the nearly 50% rally in Bitcoin’s price during the same period. Coinbase (COIN) also experienced a surge following its fourth-quarter earnings report, where it exceeded analysts’ expectations and showcased its strong performance amidst the crypto rally.
Based on a Q4 report released last month, the company exceeded expectations in terms of earnings and revenue. According to FactSet data, earnings stood at $1.04 per share, surpassing the average analyst estimate of $0.02 per share. Revenue reached $953.8 million, surpassing the analyst forecast of $826.1 million. This strong performance resulted in a 13% surge in COIN shares during post-market trading, adding to a 3% gain in the regular session.
Alongside beating earnings estimates, Coinbase posted a 2023 adjusted EBITDA of $964 million and anticipates generating $410 million to $480 million in subscription and service revenue in the first quarter of 2024. The company’s ETFs have also invigorated the sector, leading to increased activity and engagement on the platform.
The post Why Did ARK Invest Sell $150M Coinbase (COIN) Shares in a Week? appeared first on CryptoPotato.
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