The FTX collapse continues to put the crypto industry under pressure. However, ARK Invest, a Bitcoin whale, is buying the dip on Coinbase, adding $53 million this month. According to Bloomberg, Cathie Wood’s ARK Invest has purchased more than 1.3 million shares of Coinbase this month, according to Bloomberg.
ARK Invest, also a Bitcoin whale, collects Coinbase on the decline
cryptocoin.comThe consequences of the collapse of Sam Bankman-Fried’s FTX are spreading. The loss of trust in cryptocurrency exchanges puts other exchanges in a difficult position. Therefore, the risk of contagion by the FTX crash is pushing down the prices of crypto exchanges. One of them is the leading Bitcoin exchange Coinbase. Stocks fell to an all-time low. But Cathie Wood sees this as a buying opportunity.
Coinbase is trading close to record lows of around $41 per share, from its high of $429 in April 2021. The stock of the crypto exchange has seen a decrease of about 20% compared to last week. It also closed Monday’s trading session at $41.23. That’s a far cry from the roughly $430 shares reached shortly after the exchange went public in April 2021.
ARK Invest also increased its purchases of GBTC and Silvergate
In the midst of the decline, Cathie Wood’s ARK Invest sees the dip as a buying opportunity, according to Bloomberg data. ARK Invest, also a major Bitcoin whale, has bought more than 1.3 million Coinbase shares worth approximately $53 million this month alone. This brings the total stake of the fund to approximately 8.4 million shares. Thus, ARK Invest owns approximately 4.7% of Coinbase’s total outstanding shares. Meanwhile, most of the ARK Coinbase assets are part of the flagship fund, the ARK Innovation ETF, which makes it the 13th largest.
Cathie Wood has been a long-standing Bitcoin bull. Despite the negative sentiment from the crypto bear market and other Wall Street players, he hasn’t given up. Meanwhile, analysts from Bank of America and Daiwa Securities downgraded Coinbase shares this month. Also, the company has now had at least one ‘buy’ recommendation in over a year.
However, Coinbase isn’t the only place Wood has focused this month. According to Bloomberg, ARK Invest has increased its acquisitions of Silvergate Capital, as well as Grayscale Bitcoin Trust. Silvergate is a crypto bank. Both Coinbase and Silvergate Capital lost more than 80% in 2022. Grayscale, on the other hand, saw a drop of about 76%. Meanwhile, the two biggest cryptos, Bitcoin and Ethereum, fell 66% and 70% respectively.
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