Ark Invest Sells Another $24 Million on Coinbase as Share Price Hits Annual High

adminDecember 21, 2023

Cathie Wood’s Ark Invest sold additional Coinbase shares yesterday, bringing the two funds to a total of 149,780 coins ($24.2 million) as the stock hit a yearly high, according to the company’s latest trading filing.

Of the total, Ark sold 132,782 shares ($21.5 million) in the Innovation ETF and 16,998 shares ($2.7 million) in the Next Generation Internet ETF. The investment management firm continues to rebalance its fund weights amid the recent surge in COIN prices.

Ark sold $5.5 million worth of Coinbase stock on Tuesday. The company sold $200 million worth of Coinbase stock over the past month.

Coinbase shares closed at $161.86 yesterday, up about 0.4% for the day. However, COIN reached a yearly high of $169.45 on Wednesday morning before falling about 4.5% by market close. Coinbase shares are up 60% in the past month and 344% year to date, according to TradingView. The stock is still more than 50% below its all-time high of about $343 set in November 2021.

COIN/USD price chart. Image: TradingView.

Ark sells $14 million worth of GBTC

On Wednesday, Ark sold 398,383 shares of GBTC stock, worth $14.3 million, from its Next Generation Internet fund, following its sale of $28 million worth of GBTC from the same ETF on Monday.

According to TradingView, GBTC stock was trading at $35.83 at market close yesterday, up 2.6% on the day, 23% over the past month, and up 336% year-to-date. According to price data from The Block, the price of GBTC has risen recently along with a surge in the value of the Bitcoin underlying. It is up 2.3% in the last 24 hours, up 17.5% in the past month, and up 165% since the beginning of the year. Bitcoin is currently trading at around $43,763.

GBTC/USD price chart. Image: TradingView.

Ark’s recent sale of GBTC is the result of a significant narrowing of the discount to GBTC’s net asset value in recent months. This refers to how much the market price of each stock is below the value of its corresponding Bitcoin. GBTC’s discount to NAV has fallen from more than 40% in June to about 7.6%, according to YCharts.

GBTC discount to NAV. Image: YCharts.

Ark buys $12 million worth of stock in Jack Dorsey’s Block.

Ark also bought 158,334 shares, or $12.1 million, of Jack Dorsey’s Block for the Next Generation Internet ETF, following $26 million worth of shares it acquired for the fund on Monday. Block stock (SQ) was trading at $76.11 at market close yesterday, down 1.6% on the day, up 31% over the past month, and up 15% year-to-date, according to TradingView.

Last month, Block reported that Bitcoin’s total profits in the third quarter rose 22%, bringing in $45 million compared to $37 million in the same period in 2022. This growth is due to the rise in the average market price of Bitcoin and the rise in the price of Bitcoin. This is the amount of Bitcoin sold to customers through its Cash App mobile payment service, according to the company’s shareholder letter.

Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

adminDecember 21, 2023