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Investors are closely monitoring Coinbase’s earnings reports as shares of the crypto giant (COIN) have risen more than 214% year-to-date. This fresh boost followed the crypto exchange reaching an agreement with Cboe’s BZX Exchange to maintain a surveillance-sharing agreement for five of its spot Bitcoin ETF applications.
As a result, funds associated with Cathie Wood’s ARK Investment have rushed to profit from the stock upsurge.
ARK Invest Offloads COIN
The investment fund led by Bitcoin bull Cathie Wood acquired a significant amount of Coinbase shares during the bear market. While Wood remains optimistic about Coinbase following a court ruling against the SEC that favored Ripple’s XRP, ARK Invest has offloaded $88.5 million worth of COIN shares in the past two weeks.
On July 11, the investment firm sold $12 million worth of COIN shares as the stock climbed near a one-year high. Nearly $50.5 million worth of shares, representing 485,000 COIN, were sold on July 14 across three different funds. Three of ARK Investment’s ETFs cashed in on COIN’s recent rally, selling a total of 248,838 shares worth $26.3 million, based on Monday’s closing price of $105.5.
Following a rough start, Coinbase reported a net loss of $79 million in Q1 of this year, down from the $430 million lost during the same period last year. In a shareholder letter, Coinbase described this as a “turning point” in building a more efficient and financially disciplined company.
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Industry players are turning increasingly bullish on Coinbase as COIN shares witnessed a turnaround despite the crypto exchange receiving a Wells notice in March and facing a lawsuit from the United States Securities and Exchange Commission in June.
The crypto exchange is expected to release its Q2 earnings early next month.
Relocating Capital to ‘Laggards’
The recent moves by ARK Invest are unusual given that it made a series of buys of Coinbase’s stock during crypto winter. However, Wood attributed the sales to simple profit-taking. In a recent Bloomberg interview, the executive stated that the investment firm is instead looking to relocate “capital to perhaps some laggards.” She added:
“Flows are coming back. One of the reasons, ARKK established a base over the last year and it has been trading up and down through that base. I think a lot of investors and more who are technically oriented are looking now at a breakout in our strategy. We’ll see if it continues. We have enjoyed positive inflows in July, which have cut in half the outflows.”
Besides COIN, ARK has also offloaded Tesla (TSLA) shares worth $13 million and instead purchased additional shares of Meta Platforms (META) and Robinhood (HOOD).
