Cathie Wood’s investment firm took advantage of another opportunity to buy the dip, purchasing a significant amount of Coinbase stock on Tuesday. According to the firm’s daily transaction brief, ARK Invest, led by long-time Bitcoin bull Cathie Wood, purchased 420,949 shares of Coinbase (COIN) valued at a little less than $21.4 million.
The majority of the entire number of shares purchased—approximately 330,00—went to ARKK, the company’s flagship exchange-traded fund (ETF) that invests in firms pursuing disruptive innovation.
According to publicly available data, an additional 54,466 Coinbase shares were added to the Ark Next Generation Internet ETF (ARKW), with another 36,022 COIN allocated for the ARK Fintech Innovation ETF (ARKF).
COIN was trading at $50.83 at the end of the day on Tuesday, down 10.78% on the day. Coinbase shares are down about 80% since the beginning of the year, trailing Bitcoin (BTC), which is down roughly 74%.
Coinbase reported net revenue of $576 million for the third quarter, down 28% from $803 million in Q2 2022, in a shareholder letter last week, with trade volume falling from $217 billion to $159 billion. However, the company’s subscription and service revenue increased from $147 million to $211 million in the third quarter.
Ark’s recent rise in Coinbase stock holdings comes two weeks after the firm bought shares in the crypto exchange at the end of October for a total of 10,880 COIN for ARKF.
The acquisition also comes as Coinbase CEO Brian Armstrong addresses worries about his company’s exposure to FTX, the prominent crypto exchange run by Sam Bankman-Fried, who revealed on Tuesday a preliminary agreement with Binance to acquire FTX.
Armstrong claims that Coinbase has “any material exposure” to FTX or the exchange’s native cryptocurrency, FTT. Meanwhile, according to Armstrong, Coinbase has no connection to Alameda, the trading firm closely affiliated with Bankman Fried.