Ark Invest Scoops Up Coinbase and Circle Shares Amid Post-Earnings Slump
Ark Invest, led by Cathie Wood, has continued its buying spree in the post-earnings market decline. The firm acquired 54,776 Coinbase shares worth $8 million on August 4, distributed across three of its ETFs: Ark Innovation (ARKK), Ark Next Generation Internet (ARKW), and Ark Fintech Innovation (ARKF). This purchase follows Coinbase's second-quarter results, which saw the exchange's stock fall over 14%.
The investment strategy of Ark Invest involves no individual position exceeding 10% of a fund's portfolio, requiring constant rebalancing based on asset performance. As of August 4, COIN is the sixth-largest holding in ARKK, with a 4.2% weighting and a value of approximately $238 million.
On the same day, Ark Invest also acquired 23,070 Circle shares for around $1.4 million, split between its ARKK and ARKW funds. However, this purchase comes after Circle's USDC stablecoin closed at $60.35, accumulating a 25% loss year-to-date.
In contrast to these purchases, Ark Invest shed 5,700 shares of Solmate Infrastructure, valued at approximately $25,000, distributed across its three main ETFs. This move comes after Solmate's shares declined by 99% from their September peak, amidst the widespread collapse of the Digital Asset Treasuries market.