Investment house Ark Invest continued a buying spree of Coinbase stock, adding a total of 296,578 COIN shares to its exchange-traded funds (ETFs) on Wednesday, according to the firm’s daily trade information newsletter.
Coinbase share price fell to an all-time low of $38.69 on Tuesday before jumping nearly 4% on Wednesday to $40.19. Based on the closing bell price, yesterday’s purchase is valued at more than $11.9 million.
The largest purchase of 176,364 shares went to the flagship Ark Innovation ETF (ARKK), increasing its holdings to a total of 6,139,480 shares worth $246.7 million.
Another batch of 93,117 Coinbase shares worth $3.7 million was added to the ARK Fintech Innovation ETF (ARKF), followed by the ARK Next Generation Internet ETF (ARKW), which scooped up 27,097 COIN.
ARKK is an actively managed ETF that invests in companies targeting disruptive innovation, including such areas as automation, robotics, and artificial intelligence.
ARKF invests in equity securities of companies engaged in the Fund’s investment theme of fintech innovation, while ARKW aims to capture internet-based products and services, cloud computing, artificial intelligence, e-commerce, and media innovations.
Ark Invest doubles down on crypto
After dumping $75 million in Coinbase stock at the end of July, Ark Invest resumed its purchases of shares in the crypto exchange in October, with more buys executed in November and last Friday, when the firm added 78,982 COIN shares to ARKK.
Wood’s funds have continued to buy Coinbase despite the pressure the firm has come under this year, with ARKK down 65% in 2022 and the price of Bitcoin tanking amid the recent turmoil in the crypto markets.
Ark’s purchases of COIN look like a typical Wood double-down, though, with the fund manager stating last month that the collapse of FTX benefits the crypto industry as it further helps to “battle test” the infrastructure and the thesis of the digital currency.
Wood also reiterated her forecast for Bitcoin to hit $1 million by 2030, a call that Ark Invest published earlier this year.
If Wood’s predictions are to be true, the leading cryptocurrency would need to rally roughly 6,000% over the next eight years.