Ark Invest Management has acquired over 157,000 Coinbase shares for a sum of $8.6 million, marking its second buy order since it sold in March, according to TradingView data. The move appears to go against the grain of recent poor performance, notably with the COIN stock experiencing a dip of 23% in the past five days and 15% over the last month. However, year to date, COIN’s value has enjoyed over a 50% raise whilst still seeing a 51% deficit from the previous 12 months.
Ark Invest Management Indulges In Buying Spree of Coinbase Shares Despite Drop In Price
ARK Invest Management has not been deterred by Coinbase’s tumbling stock market performance, buying up over 157,000 COIN shares for $8.6 million. This investment is the second one by the organization after its sale in March. Over the last 5 days, COIN experienced a dip of 23% and 15% in one month. However, in year-to-date (YTD) valuation, its worth went beyond 50% (with 51% deficit in contrast to the previous 12 months thus indicating a sufficient loss). It is currently trading at $54.59 with 0.8% recent growth.
This bullish stance is also shared by a Cathie Wood investment fund which reportedly purchased 122,080 Coinbase stocks; a different investment group—ARK Next Generation Internet Foundation—also purchased 20,320 in stocks, while ARK Fintech Innovation Foundation bought 14,600 shares in COIN stock, making a total of 347 shares that Wood has amassed. The current activity marks the second buy over this month, made public on 5 April when a total of 147,250 shares were acquired in COIN.They remain constructively positive despite regulatory uncertainties surrounding the cryptocurrency market: indicating that the fund is confident of the company’s stock maintaining favourable pricing with better times in the future.
However, the move follows a battle fought by the exchange; Coinbase filed its legal action papers against the SEC today. They are seeking a stipulation and capricious action halt by the regulator, among other requests. Coinbase requested, amongst other things, more regulatory clarity or guidance as to how the SEC, represents its formal rulemaking processes. Paul Grewal, Coinbase’s Chief Legal Officer, released a statement about Coinbase’s uncertainty regarding this week’s attempted defiance by Coinbase:
“Regulatory clarity is overdue for our industry. Yet Coinbase and other crypto companies are facing potential regulatory enforcement actions from the SEC, even though we have not been told how the SEC believes the law applies to our business.”
[h/t Oluwapelumi Adejumo]