Cathie Wood’s ARK invest has been struggling after a hot start to 2020 and now is divesting itself from crypto exchange Coinbase.
Cathie Wood & Ark Invest’s trade activity from today 7/26 pic.twitter.com/P1NJxmht38
— Ark Invest Daily (@ArkkDaily) July 27, 2022
The once revered investor ARK Invest, led by the once revered Cathie Wood, sold off Coinbase at a massive loss. The tech focused investment fund reportedly lost over $200 million on the trade, based on some estimates.
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- ARK’s Coinbase shares were a part of their ARKK tech-focused fund. The fund is famous for having invested in Tesla, as well as holding the EV stock through its every controversy and big name short positions by legendary investors.
- The selloff comes as Coinbase is under fire from the SEC for “securities” related infringements. It’s unclear exactly what Coinbase did since there still is absolutely nothing on the books that resembles a cryptocurrency law.
- Despite the fact that Coinbase can’t really get into trouble for something when there are no laws or regulations in place, plus it has the ear of Nancy Pelosi, the stock is suffering greatly. Former supporter Goldman Sachs switched its recommendation on the exchange to “Sell.”
- ARK invest first bought Coinbase for over $200 a share back in 2021 after the crypto exchange was the first of its kind to go public. COIN is currently trading in the $52 USD range.
- ARK and Cathie Wood recently defended their stake in Coinbase, even buying the dip back in May.
- Cathie Wood’s ARKK fund used the extra cash to buy into Shopify, the eCommerce giant. Shopify integrated Bitcoin payments earlier this year.
- Cathie Wood is still bullish on Bitcoin, having tweeted about its potential just yesterday.
Important research from @skorusARK on #Bitcoin’s potential role in transforming methane emissions into bitcoin mining that will turbocharge electricity generated by solar and wind. @skorusARK https://t.co/6cgxGHNcJZTrendingElon Musk’s Complicated Relationship With Crypto
— Cathie Wood (@CathieDWood) July 26, 2022