Cathie Wood’s Ark Invest buys $9.2M worth of COIN from Coinbase amid price declines

Cathie Wood’s Ark Invest buys $9.2M worth of COIN from Coinbase amid price declines

Cathie Wood, founder and CEO of Ark Invest, remains bullish on Coinbase, whose share price has fallen nearly 85% from its all-time high of $348.98 on November 12, 2021.

Making its third investment in two months and fourth since November, Ark Invest acquired $9.2 million worth of COIN shares on Friday, media reports claimed.

According to a Bloomberg report from three months ago, Ark Invest earned $56 million worth of Coinbase shares in November 2022 alone.

COIN purchases from Ark Invest

In the latest round, the investment firm purchased 162,325 COIN shares. In the previous two, on January 5 and 12, the company raised Coinbase shares worth $5.8 million and $3.3 million, respectively. In December, it bought $11.9 million worth of COIN.

On January 5th, the day Ark Invest made its first large purchase of COIN stock this year, the stock closed the day down 11% at $33.53, while the next day, January 6th, it hit an all-time low of $31.95, indicating Ark Invest's timing couldn't have been better. The January 12 purchase of COIN shares came at a price of $43.79 per share, and it came at a time when all major crypto assets were on a recovery path led by BTC.

Earlier this month, ARK Invest made a BTC price prediction for 2030 that pegged the legacy stock at $258,500, $682,800, and $1.48 million for the bear market, base rate, and bull market scenarios.

Kraken fears dragging down COIN

After rising to $81 on February 2, nearly 95% in a month, Coinbase shares are once again in a downward spiral, particularly following the SEC's crackdown on Kraken for offering "unregistered securities" in the form of staking services.

Coinbase is a major player in staking services, and over the past week its CEO, Brain Armstrong, and other executives have emphasized that the products are not securities. Down 14.13%, COIN closed at $59.63 after opening at 68.51% on Thursday, the day Kraken announced the closure of its staking services to US investors. It closed the week down around 22%.

Impact of the downturn on Coinbase

Due to the market collapse, Coinbase reduced its headcount by over 2,000 since June 2022. The first round of layoffs took place in June when 18% or 1,100 employees were laid off, while on January 10, 20% or 950 employees were laid off.

On January 26, De Nederlandsche Bank (DNB), the central bank of the Netherlands, reportedly fined Coinbase $3.6 million for failing to register its services in the country between November 2020 and August 2022.

Priced at $250, Coinbase shares were listed on Nasdaq on April 14, 2021. COIN posted a gain of over 31% and closed the opening day at over $328. Right now, shares are trading nearly 85% below their all-time high of $348.98.

.