Cathie Wood Boosts Coinbase Stake
Cathie Wood’s funds increased their stakes in Coinbase Global Inc. while the company’s stock fell after the Securities and Exchange Commission accused it of operating an illegal exchange.
Three Ark Investment Management LLC funds, including Wood’s flagship Ark Innovation ETF, purchased 419,324 shares of the bitcoin exchange operator on Tuesday, according to Bloomberg data. In premarket trade on Wednesday, the company’s stock rose as high as 4.2%.
Despite crypto-market volatility caused by issues such as the collapse of Sam Bankman-Fried’s empire, a widening US regulatory crackdown, and a spate of bankruptcies among industry companies, Ark is the fourth-largest holder of Coinbase and has been adding to its stake on dips for nearly a year.
Wood’s flagship fund has gained 37% this year, outperforming the Nasdaq 100 Index and the S&P 500, whereas Ark Innovation ETF fell 67% last year. Wood’s firm has roughly 11.7 million Coinbase shares, with a $1 million price target for Bitcoin.
(With inputs from Shikha Singh)
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