ARK invest buys US$18 million worth of Coinbase shares amid SEC threats

Cathie Wood

25th March 2023 – (New York) ARK Invest, the tech-focused investment firm led by Cathie Wood, has purchased nearly $18 million worth of Coinbase (COIN) shares following the crypto exchange’s recent troubles with the U.S. Securities and Exchange Commission (SEC). The exchange has been accused of violating federal securities laws, prompting its stock price to plummet from over $84 to less than $62 on Wednesday.

Wood quickly took advantage of the dip and purchased 268,928 shares in Coinbase, which closed at $66.30 per share. This comes after Wood sold 160,887 shares in the firm for over $13 million on Tuesday, profiting from the recent surge in crypto markets and related industry players.

Coinbase received a Wells Notice from the SEC on Wednesday, alleging that the company’s staking products constitute unregistered securities. Despite the notice, a person familiar with the matter told Decrypt that Coinbase is “confident it will be able to defend its position in court.”

Coinbase’s struggles against the SEC are not new territory for Wood, as her own company has repeatedly been blocked by the commission in its attempts to launch a Bitcoin spot ETF in the United States. Coinbase has supported Grayscale in its attempts to launch a similar product in the past.

Wood and ARK Invest also made a similar move with Jack Dorsey’s Block (SQ) following a report from short seller Hindenburg Research that accused the company of fraud and predatory practices. Wood purchased 320,557 shares for an estimated $19.84 million, showing her confidence in the company’s ability to bounce back from the accusations.

However, Wood also recently sold 139,642 Tesla shares worth close to $27 million on Thursday, which continue to trade flat as of Friday. This move comes after Tesla CEO Elon Musk discussed Bitcoin at length with both Wood and Dorsey in 2021, highlighting the environmental benefits of Bitcoin mining.

Despite the recent market volatility and regulatory scrutiny, Wood remains bullish on Bitcoin, giving it a long-term price target of $1 million and believing it can help hedge against inflation in a world of collapsing currencies. As always, she continues to monitor the market closely and make strategic moves to stay ahead of the game.