Cathie Wood’s company, Ark Invest, has yet again started selling Coinbase shares. Over the past day, the asset management company parted ways with more than 70k COIN shares worth ~$15 million.
In batches of 45.9k, 6.9k, and 17.7k, Ark offloaded COIN from three funds: Ark Innovation ETF [ARKK], Ark Fintech Innovation ETF [ARKF], and Ark Next Generation Internet ETF [ARKW].
Coinbase price
COIN started 2024 on a downtrend, but was quick to bounce back. From its YTD low of $114.51, its price managed to rally and clinch a local high around $283 in Q1, fetching investors a ~150% ROI. However, right after, it succumbed to a downtrend and got itself arrested within a descending channel.
Over the past few weeks, it has been trading within the aforementioned bearish structure. As chalked out below, all recent breakout attempts have been unsuccessful, for the upper trendline of the channel has been acting like a strong resistance.
Ark and Coinbase: The zoomed-out picture
Prior to the latest dump, Ark Invest meddled with its COIN holdings during the first two weeks of April. Even at that time, the company chose to sell its holdings. In fact, it has been a while since Ark has inflated its Coinbase position. At the moment, it holds an aggregate of 3.726 million COIN shares. That translates to a 7% weightage on its portfolio.
Towards the end of March, Wood dissociated the “dumping” label with COIN. During an AMA session, she clarified that her company was just actively managing its shares. She added,
“Coinbase has increased roughly nine-fold since Spring of 2023. It has been more than 10% of the portfolio. We are simply taking profits. It is still the number one position and we are redeploying those profits into stocks that - just like Coinbase roughly a year ago - have been hurt by very short-term news.”
In other related news, Coinbase unveiled a better-than-expected Q1 revenue figure last week. When compared to the consensus expectation of $1.34 billion, the number registered was $1.64 billion. Right on the heels of the results, Brian Armstrong, the company executive, also bid adieu to a portion of his COIN holdings.
During the pre-trading hours on Wednesday, COIN was seen exchanging hands around $212.84. This marked a 0.69% decrease when compared to the previous day’s close.
