Cathie Wood's Ark Invest continues to buy the Coinbase dip, adds $4 million worth of COIN

Ark Invest bought another 19,892 Coinbase shares, worth $3.9 million, across three of its exchange-traded funds on Tuesday as it continued to rebalance its fund weightings following Monday’s market plunge.

The Cathie Wood-led investment firm purchased 13,833 shares ($2.7 million) for its Innovation ETF (ARKK), 2,743 shares ($533,000) for its Next Generation Internet ETF (ARKW), and 3,316 shares ($644,000) for its Fintech Innovation ETF (ARKF), according to Ark's latest trade filings.

The latest acquisitions follow the $17.8 million worth of Coinbase shares Ark bought for the same funds on Monday — the first time the firm had bought back Coinbase stock since purchasing $21 million worth of COIN in June 2023. The stock’s subsequent rise of more than 250% led to Ark offloading COIN numerous times during the period.

Ark’s investment strategy involves letting no individual holding take up more than 10% of an ETF’s portfolio. This is to maintain diversification within its funds — meaning Ark is likely to continue rebalancing its COIN weightings if the stock rises or falls significantly relative to Ark's other holdings in its funds.

According to the firm’s disclosures, COIN is now the third-largest holding within its ARKK ETF, with a weighting of 8.7%, worth $445.3 million, as of Aug. 6. COIN is the fourth-largest holding in its ARKW fund at 6.8%, worth $84.4 million. Coinbase shares represent Ark’s largest holding in its ARKF fund at 9.8%, worth $75.1 million.

Coinbase's share price recovers from 15% drop

Coinbase shares gained 2.5% on Tuesday to reach $194.17 by market close, according to TradingView — further recovering from an initial 15% drop on Monday morning amid market volatility surrounding U.S. recession fears and heightened geopolitical tensions. The stock is still up 123% over the past year but remains 5% down this week and 43% below its all-time high of $342.98, set in November 2021.

COIN/USD price chart. Image: TradingView.

Coinbase is valued at $36.1 billion as of Aug. 6, according to The Block’s data dashboard.

Ark buys more Robinhood shares, offloads Jack Dorsey’s Block

Ark also bought 121,979 shares in the crypto and stock trading app Robinhood for the same three funds on Tuesday, worth $2.1 million, as HOOD gained 4.8% for the day. This followed its purchase of $11.2 million worth of Robinhood stock on Monday. Robinhood is due to announce its Q2 financial results after market close on Wednesday.

However, the investment firm wasn’t only in buying mode, deciding to offload shares in Jack Dorsey’s Block, which agreed to supply Bitcoin miner Core Scientific with its new 3-nanometer mining ASICs last month. Ark sold 286,425 Block shares ($16.4 million) on Tuesday, following the $26 million worth of SQ it sold on Monday, as the stock traded flat on the day.