ARK Invest Continues Strategic Portfolio Adjustments: Ongoing Divestment from Coinbase Shares

ARK Invest, under the leadership of Cathie Wood, has been actively reducing its holdings in Coinbase (COIN) stock over the past few days. This marks the third consecutive trading day in which ARK Invest has strategically divested shares from the prominent cryptocurrency exchange, showcasing a deliberate approach to managing its portfolio.

In the most recent divestment move, the firm successfully sold a total of 82,255 Coinbase shares, with an estimated value of around $11.5 million based on the closing price on Tuesday. This divestment was spread across various exchange-traded funds (ETFs) managed by ARK Invest, including ARK Innovation (ARKK), ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF). It's noteworthy that ARK Invest has consistently decreased its stake in Coinbase on almost every trading day throughout the current month, indicating an ongoing and intentional adjustment in its overall investment strategy.

Despite these divestments, the resilience of Coinbase's stock is evident, remaining within a 5% range of its yearly high. The surge in Coinbase's stock price correlates closely with the upward trajectory of Bitcoin (BTC), which has witnessed a substantial 150% increase in value this year. In contrast, Coinbase has achieved a remarkable quadrupling of its stock value during the same period.

Headquartered in St. Petersburg, FL, ARK Invest maintains a policy of limiting the maximum weight of any single company in its holdings to 10%. However, the recent upswing in Coinbase's stock has led to an exceeding of this threshold within the three ETFs—ARKK, ARKW, and ARKF—despite the firm's persistent efforts to divest. Even after notable sales, such as the $49 million transaction last Friday, marking the largest divestment since July, the weighting of Coinbase in the ETFs remains elevated.

Over the course of this month alone, ARK Invest has divested more than $120 million worth of Coinbase shares, computed based on closing prices. This calculated and strategic approach to portfolio adjustments underscores the firm's commitment to adapting to dynamic market conditions while staying true to its established investment principles.

Read More: ARK Invest's Strategic Moves: $33M Coinbase Shares Sold Alongside $5.9M Reduction in Grayscale Bitcoin Trust Holdings