Ark Invest buys more Coinbase shares amid market recovery

Ark Invest purchased 28,315 Coinbase shares worth approximately $7.5 million for the ARKK fund in Tuesday’s session, as the market rebounded after a sharp drop earlier in the week.

This move comes just one week after Cathie Wood’s firm spent $16.5 million to buy Coinbase shares on November 26, continuing its strategy of rebalancing portfolio allocations amid market volatility. Ark maintains a principle of not allowing any single asset to exceed 10% of the fund’s value to ensure diversification.

COIN is currently the second largest holding in ARKK with a 5.6% allocation (about $409.6 million), trailing only the Tesla position valued at $900.2 million.

On Tuesday, Coinbase shares rose 1.3% to $263.26 after having dropped 7.4% on Monday, and continued to gain 4.2% in Wednesday’s pre-market session. Nevertheless, COIN has fallen 21.7% over the past month and is up only 2.6% year-to-date, with a current market cap of $49 billion.

Some crypto-related stocks also rebounded: Strategy rose 5.8%, Metaplanet increased 4.6%, and BitMine surged 10.3%. Conversely, miners diversifying into AI struggled, with IREN down 15.2%, Cipher Mining down 10.4%, and TeraWulf down 7.1%.

Bitcoin erased Monday’s 7% drop to reclaim the $91,000 mark, ether climbed 7% back to $3,000, and GMCI 30 gained 6.2%.

Additionally, Ark purchased 42,434 Bullish shares worth $1.8 million for ARKK and 1,951 Robinhood shares ($245,000) for the ARKW fund.