Coinbase (COIN) Share Sale Is “Active Management” – Cathie Wood

Ark Invest CEO Cathie Wood has revealed in a Reddit AMA that its Coinbase share sale is not dump off but active portfolio management
By Godfrey Benjamin
Cathie Wood's Ark Invest Continues Coinbase Stock Selloff Ahead Q2 Earnings

Highlights

  • Ark Invest's Cathie Wood has teased key reasons behind Coinbase shares sale
  • Allay dumping rumors, Wood said the sale is active portfolio management strategy
  • Ark Invest has been on a consistent COIN selloff thus far this year

ARK Invest’s Cathie Wood has attempted to correct the narrative that her firm is currently dumping its Coinbase (COIN) shares.

Advertisement
Advertisement

Cathie Wood Debunks Coinbase Selloff

During a recent “Ask Me Anything” AMA Q&A session on the social media platform Reddit’s r/Cryptocurrency page, one user asked for the rationale behind ARK Invest’s sales of Coinbase shares. 

He particularly insinuated that the company was dumping the shares. In response to his inquiry, Wood clarified that ARK Invest was not dumping, rather it was practicing active management of its portfolio. 

According to the CEO of the investment management firm, “Coinbase has increased roughly 9-fold since Spring of 2023.” 

She pointed out that Coinbase accounted for “more than 10% of the portfolio. We are simply taking profits. It is still the number 1 position and we are redeploying those profits into stocks that, just like Coinbase roughly a year ago, have been hurt by very short-term news, including Tesla, and a lot of them are in the life science space.”

Advertisement
Advertisement

Consistent COIN and HOOD Offloading

The user’s inquiry came as a result of several offloads of COIN that ARK Invest has been involved in. In March alone, quite some Coinbase shares as well as Robinhood shares (HOOD) were sold off. Last week, Ark Invest divested nearly $54.04 million worth of Coinbase and Robinhood stock. 

Precisely, the firm sold 133,533 Coinbase shares from its ARK Innovation ETF (ARKK) and another 59,125 shares from ARK Next Generation Internet ETF (ARKW) worth. Also, Cathie Wood’s firm divested 96,003 Robinhood shares worth $1.77 million from ARKW. It is worthy of note that these sales took place when both stocks rallied, attaining a fresh 52-week high.

By the end of that week, ARK Invest had reportedly divested a total of $122 million worth of shares in COIN and HOOD. Just two days before the AMA session, Ark Invest offloaded 74,291 Coinbase shares worth $20.8 million. 

Cathie Wood’s explanation for the consistent COIN shares offloading exercise might sit well with many community members because the stock in question is currently performing well in the market. 

COIN closed in the market on March 28 at $265.12 with a 3.28% increase.

Advertisement
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.