- Cathie Wood's funds, including Ark Investment Management, increased their holdings in Coinbase despite the company's shares declining after accusations from the Securities and Exchange Commission. On Tuesday, they purchased 419,324 shares when the stock dropped by up to 21%.
- Despite the cryptocurrency market's volatility caused by various factors such as the collapse of Sam Bankman-Fried's empire, a growing regulatory crackdown in the US, and numerous industry bankruptcies, Ark has consistently increased its stake in Coinbase. As the fourth-largest holder of Coinbase, Ark has been strategically adding to its position during market dips for nearly a year.
Why it matters
In July, Ark decided to sell a portion of its holdings in Coinbase due to regulatory uncertainty surrounding certain tokens listed on the exchange. Despite Tuesday's decline, Coinbase shares have risen by nearly 60% from their lowest point in December. Wood has also reaffirmed her price target of $1M for Bitcoin, which is currently trading around $27,000.
