Cathie Wood has shifted direction again on Coinbase, signaling renewed interest in the largest U.S. crypto exchange as its stock attempts to regain footing. ARK Invest disclosed that it purchased 41,453 shares of Coinbase Global Inc., valued at roughly $6.9 million.
The move follows recent sales earlier this month, when the firm trimmed exposure amid broader market weakness. Consequently, traders now question whether ARK sees a fresh opportunity after volatility shook crypto-linked equities.
ARK Rebuilds Position Across Key Funds
ARK spread the new Coinbase allocation across three exchange-traded funds. The ARK Innovation ETF led the buying with 29,689 shares worth about $4.9 million.
Additionally, the ARK Next Generation Internet ETF added 7,525 shares valued near $1.2 million. Moreover, the ARK Fintech Innovation ETF acquired 4,239 shares totaling approximately $704,000.
The purchases contrast with actions taken on Feb. 5 and Feb. 6. During that period, ARK sold 119,236 Coinbase shares worth nearly $17.4 million. However, the firm did not retreat from digital assets entirely. Instead, it redirected capital into crypto exchange Bullish during a sustained buying streak.
ARK typically caps any single holding at around 10% of a fund’s assets. Hence, portfolio rebalancing often drives buying and selling decisions. The recent addition may reflect weight adjustments as prices moved, rather than a dramatic shift in conviction.
Earnings Pressure and Analyst Optimism
The timing also aligns with Coinbase’s latest quarterly results. The company reported $1.8 billion in fourth-quarter revenue, marking a 5% decline from the prior quarter.
Significantly, Coinbase posted a net loss of $667 million after reporting a profit previously. Management attributed much of the loss to unrealized declines on its crypto portfolio and strategic investments.
Despite weaker earnings, some analysts remain constructive. Bernstein maintained an outperform rating and set a $440 price target. That forecast implies substantial upside from recent trading levels.
COIN Shows Signs of Stabilization
On February 18, Coinbase shares traded at $171.79, rising 3.22% on the day. The stock opened near $166 and quickly pushed higher. Intraday trading showed volatility between $166 and $173. However, buyers stepped in after early pullbacks, signaling renewed demand.
