ARK Invest, the technology innovation fund led by Cathie Wood, bulked up its Coinbase holdings on Wednesday and Thursday. COIN stock fell along with cryptocurrency prices Friday.
Cathie Wood, ARK Add COIN
On Wednesday, ARK added 213,519 shares of COIN stock across its funds, worth more than $13 million based on Wednesday's closing price of 61.18.
Wood added 181,972 shares of COIN stock to the ARK Innovation ETF and 31,647 shares to its Next Generation Internet ETF, according to ARK's daily investors update. Recursion Pharmaceuticals was ARK's only other purchase for the day, adding 22,845 shares worth $181,389 at Wednesday's close to its ARK Genomic Revolution ETF.
Meanwhile, Wood sold a total of 7,257 shares of Nvidia worth $1.5 million and 207,747 shares of DraftKings worth more than $4 million as of market close Thursday.
Wendesday's purchase is ARK's largest Coinbase investment so far this year. On Feb. 10, ARK disclosed it purchased 162,325 shares of COIN worth roughly $9.26 million at the time.
ARK followed up Wednesday's buying spree by adding 63,585 Coinbase shares on Thursday, worth $3.96 million at market close. Wood added 53,783 shares to the ARK Innovation ETF. And 9,802 shares were added to the ARK Next Generation Internet ETF.
Wood's buy also comes as regulators are cracking down on crypto exchanges. Earlier in the month, United States-based Kraken paid a $30 million fine to the Securities and Exchange Commission to settle charges of selling unregistered securities.
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Coinbase Earnings
Coinbase topped expectations by posting a better-than-expected loss for its fourth quarter results on Tuesday. The exchange reported a loss of $2.43 per share, compared to forecasts of a $2.52 loss per share, according to the FactSet consensus. Revenue plummeted 75% to $629.1 million, but still beat predictions of $587.8 million.
For the year, Coinbase incurred a loss of $2.6 billion, compared to net income of $3.6 billion in 2021.
Meanwhile, the number of verified users increased 24% to 109.1 million in the fourth quarter. But the number of monthly user transactions fell to 8.3 million over the year from 11.4 million in Q4 2021.
In January the company announced it's reducing its head count by 950 employees from its 4,510-strong workforce. The restructuring should conclude by the end of the second quarter, Coinbase says.
For the first quarter, Coinbase projects subscription and services revenue to double, targeting between $300 million and $325 million.
COIN stock dropped 6.29% Friday after rising 1.9% on Thursday. Coinbase stock is now down 4.8% over the past month, however shares are still up 65% so far this year.
Meanwhile, Cathie Wood and ARK's ARKK stock fell 3.1% Friday after dropping 1.54% Thursday, while shares of ARKW slid 2.9% Friday after edging down 0.65% Thursday.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
