ARK Invest Cashes Out on Coinbase Amid Analyst Optimism
In a surprising move, ARK Invest, under the leadership of Cathie Wood, parted with a substantial 499,149 shares of Coinbase Global (COIN), totaling approximately $90 million. This decision followed closely on the heels of Coinbase’s impressive fourth-quarter performance, which not only exceeded Wall Street’s expectations but also triggered a wave of optimistic upgrades from financial analysts.
Despite being a staunch supporter of Coinbase, ARK Invest made significant reductions in its holdings across several funds, including 397,924 shares from the ARK Innovation ETF (ARKK), 45,433 from the ARK Next Generation Internet ETF (ARKW), and 55,792 from the ARK Fintech Innovation ETF (ARKF).
The news of these sales comes as Coinbase’s stock enjoyed a notable surge, climbing nearly 27% to $180.31, buoyed by its stellar quarterly report. Financial circles buzzed with excitement as firms like KBW, Wedbush, Canaccord Genuity, and JMP Securities raised their price targets for Coinbase, signaling a bullish outlook on the crypto exchange’s future.
However, not all feedback was glowing. JPMorgan voiced concerns over Coinbase’s transparency regarding the impact of bitcoin ETFs on its operations. Similarly, Mizuho remained skeptical, maintaining its underperform rating with a $60 price target.
In a parallel development, ARK Invest also divested $6.72 million worth of shares in the trading platform Robinhood (HOOD), marking a significant shift in its investment strategy.
