Cathie Wood’s Ark Investment Management has doubled down on its bullish stance on Coinbase, the largest cryptocurrency exchange in America. The investment management firm has purchased another pile of Coinbase (COIN) stock following a price dip caused by the recent SEC lawsuit against the exchange.
Recall that the U.S. Securities and Exchange Commission (SEC) sued Coinbase on Tuesday, alleging that the firm failed to register as a national securities exchange, clearing agency, and broker despite performing all the functions. The commission also accused the company of failing to register its staking-as-a-service product and violating federal securities laws.
The SEC’s case against Coinbase came within 24 hours after the agency began enforcement action against Binance, the world’s largest crypto exchange. Among the thirteen charges unveiled against the firm were allegations of self-dealing, market manipulation, and securities law violations.
Ark Invest Buys $21.6M Worth of COIN
Following the Coinbase lawsuit, COIN’s price came tumbling down. At the end of U.S. trading hours on Tuesday, the stock had plummeted by more than 13%, closing the trading day at $51.61.
According to Ark Invest’s trading activity on Tuesday, the company purchased 419,324 shares of Coinbase worth $21.6 million. The investment firm split the purchase across the ARK Innovation ETF, ARK Next Generation ETF, and ARK Fintech Innovation ETF.
Cathie Wood and Ark Invest’s trade activity from today 6/6 pic.twitter.com/5np2GcZkWi
— Ark Invest Daily (@ArkkDaily) June 7, 2023
The latest acquisition brings ARK’s total COIN holdings to 11.44 million shares valued at roughly $590 million.
Ark’s Previous COIN Purchases
Ark Invest has a record of buying COIN’s dips emerging from market conditions and regulatory issues. In early May, the investment firm purchased 168,869 Coinbase stock worth about $8.5 million after the shares dropped 6.8% amid news of a class-action lawsuit that accused the exchange of violating privacy laws.
ARK acquired 304,300 COIN worth $17.5 million in April after purchasing 2.4 million shares for $117 million in the previous month. The company also made several rounds of COIN purchases in February and January.
Meanwhile, Ark Invest sold thousands of Coinbase shares in March after a steady buying streak. On March 21, the firm dumped 160,887 COIN stock worth $13.5 million. ARK’s frequent COIN purchases show Wood is unrelenting in her bullish support for the exchange.