Cathie Wood’s Ark Investment Management has doubled down on its bullish stance on Coinbase, America’s largest cryptocurrency exchange. The investment management firm has purchased another stack of Coinbase (COIN) shares following a price drop caused by the recent SEC lawsuit against the exchange.
Recall that the US Securities and Exchange Commission (SEC) sued Coinbase on Tuesday, alleging that the company failed to register as a national securities exchange, clearing agency, and broker despite performing all functions. The commission also charged the company with failing to register a staking product as a service and violating federal securities laws.
The SEC case against Coinbase came within 24 hours after the agency launched enforcement action against Binance, the world’s largest cryptocurrency exchange. Among the thirteen charges unveiled against the company were allegations of self-dealing, market manipulation, and violations of securities law.
Ark Invest buys cryptocurrency for $21.6 million
After the Coinbase lawsuit, the price of COIN fell. At the end of US trading hours on Tuesday, the stock was down more than 13%, closing the trading day at $51.61.
According to Ark Invest’s trading activity on Tuesday, the company purchased 419,324 shares of Coinbase, valued at $21.6 million. The investment firm has split the buy across the ARK Innovation ETF, ARK Next Generation ETF, and ARK Fintech Innovation ETF.
Business activity for Cathy Wood and ArcInvest as of today 6/6 pic.twitter.com/5np2GcZkWi
– Ark Invest Daily (@ArkkDaily) June 7, 2023
The latest acquisition brings ARK’s total holdings of COIN to 11.44 million shares valued at approximately $590 million.
Previous Ark purchases of Coin
Ark Invest has a history of buying COIN dips arising from market conditions and regulatory issues. In early May, the investment firm bought 168,869 Coinbase shares worth about $8.5 million after shares fell 6.8% amid news of a class action lawsuit that accused the exchange of violating privacy laws.
ARK acquired 304,300 coins worth $17.5 million in April after purchasing 2.4 million shares for $117 million the previous month. The company also made several rounds of COIN purchases in February and January.
Meanwhile, Ark Invest sold thousands of Coinbase shares in March after a steady buying streak. On March 21, the company disposed of 160,887 shares of COIN worth $13.5 million. ARK’s repeated purchases of COIN show Wood is relentless in its bullish support for the stock.
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