Ark Invest Boosts Coinbase Holdings with $11.5 Million Purchase

Ark Invest has made another significant purchase of Coinbase shares, acquiring a total of 64,358 shares for $11.5 million on Monday, as the stock plummeted by 17.6% during a turbulent market session.

The purchase was split between two of Ark’s exchange-traded funds (ETFs): 52,753 shares valued at $9.4 million for its Ark Innovation ETF (ARKK) and 11,605 shares worth $2.1 million for its Ark Fintech Innovation ETF (ARKF).

This latest move follows a series of strategic acquisitions, with Ark spending $8 million on Coinbase shares for its Next Generation Internet ETF (ARKW) just a week earlier. In total, Ark has now invested $28.2 million in Coinbase over the past three weeks.

Ark’s investment strategy emphasizes portfolio diversification, capping any single holding at 10% of a fund’s total value. This ensures the firm can make adjustments as the value of Coinbase shares fluctuates in relation to other holdings within the funds.

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Currently, Coinbase is Ark’s third-largest position in the ARKK fund, accounting for 7.1% of the portfolio, valued at $375.1 million.

Alexander Stefanov