Cathie Wood’s Ark Invest Bets Big on Coinbase Amid COIN Stock Plunge
Despite a brutal selloff in crypto stocks, Ark Invest has doubled down on its Coinbase (COIN) holdings, acquiring 64,358 shares worth $11.5 million across two of its exchange-traded funds (ETFs).
The move came after COIN plummeted 17.6% on Monday, falling to $172. The Cathie Wood-led firm added:
- 52,753 shares ($9.4M) to the Ark Innovation ETF (ARKK)
- 11,605 shares ($2.1M) to the Ark Fintech Innovation ETF (ARKF)
Ark’s buying spree comes after it scooped up an additional $8 million in Coinbase stock last week and $8.7 million the week before, bringing its three-week investment in COIN to $28.2 million.
Coinbase Remains a Key Holding for Ark Invest
Ark limits individual holdings to 10% of a fund’s portfolio to maintain diversification. Based on its latest disclosures:
- COIN is the third-largest holding in ARKK (7.1% weighting, valued at ~$375.1M), trailing Tesla and Roku.
- COIN is the second-largest holding in ARKF (7.7% weighting, valued at ~$65.7M), behind Shopify.
After Monday’s 17.6% drop, COIN rebounded 4.3% in pre-market trading Tuesday. The company’s market valuation now stands at $33.3 billion.
Crypto Stocks and Bitcoin Face Heavy Losses
The Coinbase slump was part of a broader market downturn, with major crypto-related stocks suffering significant losses:
- MicroStrategy (MSTR): -16.7%
- Marathon Digital (MARA): -16.3%
- Bitcoin (BTC): -7.6%
- GMCI 30 Index (tracking top 30 cryptos): -8.4%
Ark Invest’s Strategic Rebalancing Amid Market Turbulence
Besides Coinbase, Ark also bought 269,864 Robinhood (HOOD) shares worth $9.6M, capitalizing on a 19.8% drop in HOOD stock.
At the same time, Ark sold 375,607 shares in Block (SQ) across its ARKK and ARKW funds after an 8.8% drop in Block’s stock price.
Beyond crypto stocks, Ark also bought Tesla (TSLA), Palantir (PLTR), AMD, Tempus AI (TEM), and Robinhood (HOOD) while trimming its holdings in SoFi (SOFI), Block (SQ), and UiPath (PATH).
Cathie Wood’s Bullish Outlook on Crypto and AI Stocks
Despite ongoing market turmoil, Cathie Wood remains optimistic. She believes the current selloff represents “the last leg of a rolling recession” and predicts a “deflationary boom” in the second half of 2025.
She also suggests that this market downturn could provide more policy flexibility for the Trump administration and the Powell-led Federal Reserve than many investors expect.
Ark has long been bullish on crypto and AI innovation, and Wood believes these sectors will thrive under Trump’s policies.