ARK Invest's December Share Sale Propels Coinbase Proceeds Beyond $200M Mark

Cathie Wood's investment firm, ARK Invest, made significant moves within its portfolio this week, signaling strategic adjustments to capitalize on market dynamics. Headed by Wood, the firm orchestrated a series of transactions, shedding positions in some assets while reinforcing its commitment to others.

One notable development was ARK Invest's ongoing divestment of Coinbase (COIN) stock. This strategic move, spanning December, has amounted to an impressive $196.8 million in sales. The decision comes on the heels of a robust performance for COIN, with shares soaring by almost 30% since the close of November.

Within this maneuver, the ARK Innovation exchange-traded fund (ARKK) took the lead, executing the sale of 132,782 COIN shares. Simultaneously, the ARK Next Generation Internet ETF (ARKW) offloaded 16,998 shares. The combined value of these transactions reached $24 million based on Wednesday's closing prices.

ARK Invest's strategy involves a reduction in exposure to Coinbase as the stock experiences upward momentum. This aligns with the firm's policy, capping its investment in individual companies at around 10% of its overall holdings. Despite this cautious approach, COIN remains above the specified threshold in both ARKK and ARKW.

In addition to the adjustments in Coinbase holdings, ARKW made significant changes to its position in the Grayscale Bitcoin Trust (GBTC). The fund divested 398,383 GBTC shares, reflecting a strategic shift. Concurrently, the firm increased its investment in Block (SQ), acquiring an additional 158,334 shares. Block, recognized for its Cash App facilitating crypto payments, recently introduced a new self-custody bitcoin wallet.

While Wednesday saw a marginal expansion of 0.33 percentage points in the discount to net asset value for GBTC, reaching 7.9%, this remains notably below the 12.5% observed earlier in the month. The deviation is of significance, especially considering it hovers close to the narrowest point recorded since August 2021, as indicated by Ycharts data. Meanwhile, Bitcoin experienced a noteworthy 3.3% rally, surpassing the $44,000 mark for the first time in 10 days, according to data from Bitsday Indices. These market dynamics suggest a dynamic and evolving landscape, prompting strategic moves from prominent investment entities like ARK Invest.

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