Cathie Wood's Ark Invest just trimmed its holding in Coinbase Global for the first time in nearly a year. Ark's flagship Innovation ETF dumped 135,152 shares of the cryptocurrency exchange platform, valued at around $12 million.
Ark Innovation at the same time picked up another 1,342,478 shares of Ginkgo Bioworks -- a cheap biotech stock that Ark has favored for a while -- in a purchase valued at around $2.7 million.
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Ark Innovation has been adding shares of (COIN) -) since July 2022. Even after this sale, Coinbase remains the ETF's second-largest position. Ark Innovation's Coinbase holding is weighted at 8.25% of the fund, and its 7.9 million shares are valued at more than $700 million.
Ark Innovation only has one larger holding: Tesla (TSLA) -). Elon Musk's electric car company is weighted at 11.18% of the fund and valued at $963,371,427.
Coinbase has been on a rally ever since BlackRock filed for a Bitcoin ETF in mid-June. The stock -- which is up more than 150% for the year so far -- nearly doubled in the past month, surging from $50 on June 12 to $89 on July 11.
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Amid this rally, Atlantic Equities downgraded Coinbase to Neutral from Overweight, lifting its price target to $80.
"While the tenets of Atlantic's recent upgrade remain in place, the risk/reward looks less attractive at this level given continued regulatory challenges ahead and the surprisingly weak volume backdrop," Atlantic analyst Simon Clinch wrote.
The median analyst price target for the stock is $61, with a 'hold' consensus in place since July.
Coinbase stock was down more than 2% Wednesday morning.
