Cathie Wood’s Ark Invest Splashes $3Million on Buying Coinbase’s dip

Cathie Wood’s Ark Invest has bought a total of 546,579 shares of Coinbase worth $2.9 million.

The purchase is spread out across the company’s three actively managed exchange-traded funds: Ark Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF).

Coinbase’s stock has plunged from $73 to $62 in after hours trading on Tuesday, with the rout continuing with a 26% drop to as low as $53.72 at the closing bell on Wednesday.

Coinbase went public on the Nasdaq exchange through a direct listing in April 2021, with the company’s stock initially selling at $381.

Whether Ark Invest’s bet on Coinbase stock will pay off remains to be seen, though.

Per a Reuters report, thanks to the strength of its portfolio of companies such as Zoom Video Communications Inc and Teladoc Health that rallied during the pandemic, ARK Innovation ETF outperformed all other actively managed U.S. equities in 2020.

However, as of the end of April 2022, Wood’s ARK Innovation ETF was down 50% year to date, falling nearly an additional 8% on Wednesday. Next Generation Internet and Fintech Innovation are down 46% and 48% year to date, respectively.