With the market rising to multiyear highs, Cathie Wood’s ARK Invest is still profiting off its Coinbase stockpile.
As the price of the stock soars above $270, ARK Invest, one of the ten US issuers of spot Bitcoin exchange-traded funds (ETF), is extracting profits from its Coinbase stockpile.
ARK liquidated 199,526 Coinbase shares from its ETFs on March 21, as per a trade notification that Cointelegraph was able to view.
Based on Coinbase’s closing price of $262 on March 21, the Cathie Wood-founded investment business unloaded 133,533 shares from the ARK Innovation ETF (ARKK), valued at around $35 million, according to TradingView data.
Additionally, 59,215 shares from the ARK Fintech Innovation ETF (ARKF) and 6,778 shares from the ARK Next Generation Internet ETF (ARKW) were offloaded by ARK. At the closing price on March 21, the entire deal is valued at $52.3 million.
The selling occurred while Coinbase’s stock was rising steadily and broke beyond $270 for the first time since December 2021. TradingView reports that on March 21, Coinbase stock temporarily exceeded $276.
One of ARK’s biggest sales to date in 2024 occurred during its most recent Coinbase sale. The last significant transaction took place on March 11th, when ARK sold 270,365 Coinbase shares.
ARK sold 499,149 COIN shares from its three ETFs on February 16, making it the company’s largest Coinbase transaction of 2024 thus far. According to TradingView data, Coinbase shares traded for about $190 on that day, 37% less than the current price.
As of this writing, shares of Coinbase have increased by around 250% in the previous six months.
In 2023 and the first part of 2024, ARK has been selling down Coinbase stock aggressively. After Coinbase made its market debut in 2021, the business purchased a significant number of its shares.
ARK has been actively selling shares of Block, a Bitcoin-focused fintech company formed by Jack Dorsey, a co-founder of Twitter (formerly known as X), in addition to Coinbase.
In order to raise $15.8 million, ARK unloaded an additional 188,519 Block shares from its ARKK fund on March 21.
In order to comply with Rule 12d3-1, ARK also liquidated 93,002 Robinhood shares, valued at about $2 million, from the ARKW ETF as the fund’s holdings of Robinhood stock became close to 5% of the portfolio’s overall weight.
A registered investment advisor, broker, dealer, or underwriter is not permitted to purchase securities for an exchange-traded fund (ETF) for more than 5% of the total asset value, according to Rule 12d3-1.
For some time now, ARK has been selling Robinhood shares in accordance with Rule 12d3-1. Additionally, on March 14, the company sold 583,563 Robinhood shares from the ARKK fund without mentioning Rule 12d3-1 compliance.
