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Cathie Wood’s Ark Invest Purchases $2.9 Million In Coinbase Stock In The Dip

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Cathie Wood’s investment firm, Ark Invest, purchased 546,579 shares of Coinbase on Wednesday for a total of $2.9 million, according to the firm’s daily trade information email.

The investment is distributed over three actively managed exchange-traded funds managed by the company: Ark Innovation, Next Generation Internet, and Fintech Innovation.

On Tuesday, Coinbase, America’s largest cryptocurrency exchange, presented its first-quarter earnings report, reporting a $430 million loss and missing several key measures.

Following the publishing of the study, Coinbase’s stock fell from $73 to $62 in after-hours trading on Tuesday, with the collapse continuing with a 26% drop to $53.72 at the closing bell on Wednesday.

Coinbase’s earnings report also came amid a broader crypto market slaughter precipitated by the collapse of Terra’s UST stablecoin.

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Coinbase went public on the Nasdaq platform in April 2021 through a direct listing, with the company’s stock originally trading for $381.

Coinbase CEO Brian Armstrong took to Twitter on Wednesday to cite well-known venture capitalist Fred Wilson, who stated that “markets are irrational in the short term but not over the long term,” and that sometimes they “offer fire sale prices on the greatest companies in the world.”

In this approach, Armstrong made it apparent that Coinbase’s stock at roughly $50 might be considered a steal, and Ark Invest appears to have taken the hint.

Meanwhile, Wood, who is known for her stock-picking abilities, linked the current condition of disruptive technologies to the dot-com industry’s collapse in the early 2000s, claiming that “stocks sold off after the tech/telecom bubble because the “dream” would not become reality for 20-25 years.”

Wood, on the other hand, believes that “genome sequencing, adaptive robots, energy storage, artificial intelligence, and blockchain technology are realities, with their stocks seemingly in the deep value zone.”