• Ark Invest purchased Coinbase (COIN) and Block (SQ) shares.
• The purchase came after Coinbase was slapped with a Wells notice by the SEC that caused an 11% drop in COIN’s value.
• Ark Invest has around $50 billion in Assets Under Management (AUM).
Ark Invest Purchases Coinbase and Block Shares
Ark Invest, an American investment management company, has increased its holdings of Coinbase (COIN) and Block (SQ) shares. On March 23, the firm added 230,599 shares of COIN and 275,544 shares of SQ to its ARK Innovation ETF (ARKK), as well as 45,013 shares of SQ and 38,329 units of COIN to its ARK Next Generation Internet ETF (ARKW). Additionally, 17,515 units of SQ were added to the ARK Fintech Innovation Fund (ARKF). Altogether the firm purchased $12.6 million worth of COIN shares and $18.1 million worth of SQ on March 24.
Founded in 2014 by Cathie Wood, Ark Invest currently has assets under management (AUM) totaling around $50 billion as of February 2021. However this amount has dropped to just $7.208 billion as of March 24 according to YCharts. The purchase comes after Coinbase was slapped with a Wells notice by the SEC which caused a 11% drop in COIN’s value so far leading up to the purchases made by Ark Invest on March 24th.
Why Ark Invest is Buying
According to an email sent to investors, Ark took some profit on its COIN holdings on March 21 before buying more shortly afterwards due to the dip in price resulting from the Wells Notice issued against Brian Armstrong’s Coinbase.. This appears to indicate that they are taking advantage of this opportunity to increase their holdings while prices remain low before they potentially rise again later on down the line when news regarding Coinbase settles down.
It will be interesting to see if Ark continues purchasing these stocks or if they plan on selling them off once prices have recovered from this period caused by uncertainty surrounding Coinbase’s future prospects due to the enforcement action taken against it by US regulators such as the SEC. Nevertheless we can assume that this move is part of their strategy for making long term investments into companies like Coinbase and Block which have shown incredible potential for growth over recent years despite occasional dips here and there due regulatory actions or other obstacles faced along their journeys towards becoming household names in crypto investing circles across America and beyond.