Pro-Bitcoin investment veteran Cathie Wood is capitalizing on the surge in Coinbase stock by selling a small portion of its holdings. Wood, founder of investment firm ARK Invest, recently offloaded 135,152 Coinbase shares ($12 million) from the ARK Innovation ETF, which makes up 0.14% of the fund’s total investments. This move comes as the price of Coinbase stock has experienced a significant increase, reaching a peak of $90.9 on July 11 before closing at $89 on Tuesday.
Coinbase’s stock has been on a consistent upward trajectory, with a 60% increase over the past month and a remarkable 140% increase year-to-date. Wood had previously taken profits from Coinbase shares earlier this year when ARK sold 160,887 shares for $13.5 million in March.
Despite the recent sale, Wood has been actively accumulating Coinbase stock in multiple ARK funds. In June alone, ARK purchased approximately $40 million worth of shares. In previous months, they bought around $33 million in April and May, as well as $117 million worth of shares in March.
Coinbase executives, including CEO Brian Armstrong, have also been selling their shares as the price of the stock rallied in recent months. On July 6, Armstrong and other senior executives sold a combined total of 88,058 shares worth about $6.9 million. Additionally, Coinbase’s chief accounting officer, Jennifer Jones, sold 74,375 shares on June 29, netting $5.2 million.
It is noteworthy that Coinbase’s stock has continued to rise despite the legal challenges the exchange is facing. The United States Securities and Exchange Commission (SEC) has filed a securities violation lawsuit against the company. However, the growth in the stock price can be attributed to a fear of missing out on the BlackRock spot Bitcoin ETF filing, in which Coinbase has been named a “surveillance-sharing” partner.
This recent move by Cathie Wood reflects the dynamism of the cryptocurrency market and the need for investors to seize opportunities when the market conditions are favorable. As the price of Coinbase stock continues to soar, it will be interesting to see how Wood and other investors navigate this rapidly evolving landscape.
In conclusion, Cathie Wood has sold a small portion of ARK Invest’s Coinbase holdings to capitalize on the surge in stock price. This move comes as Coinbase’s stock continues to rise despite facing legal challenges from the SEC. Wood remains active in accumulating Coinbase shares across various ARK funds, signaling her long-term bullish outlook on the cryptocurrency industry.