ARK Capitalizes: Strategic Disposition of $42.6M Coinbase Shares Amidst COIN's 20-Month High

In a strategic move, ARK Invest, under the leadership of Cathie Wood, has chosen to divest more than $150 million from its holdings in Coinbase (COIN) since December 5. This decision coincided with a significant surge in the Nasdaq-listed cryptocurrency exchange, propelling it to a 20-month high on Wednesday.

The divestment involved the sale of 283,104 shares of Coinbase, amounting to $42.59 million based on the cryptocurrency platform's last closing price of $150.46. The impact of this substantial sell-off reverberated through ARK's ARK Innovation (ARKK) and ARK Next Generation Internet (ARKW) exchange-traded funds (ETFs). Since December 5, ARK Invest has now offloaded a total exceeding $150 million worth of Coinbase shares.

On Wednesday, COIN demonstrated an impressive surge of over 7.7%, breaching the $150 mark for the first time since April 2022. Despite recent divestitures, Coinbase continues to hold a prominent position in ARK's portfolio, representing over 10% and retaining its status as the leading asset among the investment firm's top 10 holdings.

Coinbase's performance has been remarkable throughout the year, with its shares experiencing a staggering 325% surge. This outperformance eclipses that of the S&P 500's leading performer, tech giant NVIDIA (NVDA), which recorded a 226% increase, largely driven by the artificial intelligence narrative.

In addition to the Coinbase sell-off, ARK Invest also opted to liquidate approximately $1.63 million worth of shares in the Grayscale Bitcoin Trust (GBTC).

Market observers are keenly watching the momentum in COIN's rally, with some predicting its sustainability and anticipating potential price targets of $200 in the coming months.

Read More: Cathie Wood's ARK Invest Trims Coinbase Holdings Significantly Amid Price Surge, Most Substantial Sale Since July