ARK Invest’s Bold Move: Buying Coinbase While Bitcoin Takes a Dive!

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In a move that could only be described as audacious, the asset management behemoth known as ARK Invest has decided to wade into the murky waters of cryptocurrency by acquiring shares of the beleaguered exchange, Coinbase. This comes at a time when tech stocks are experiencing a rather dramatic nosedive, and Bitcoin has plummeted to depths not seen in months—one might say it’s a veritable crypto graveyard out there! 💀

According to the latest missive from the firm, they have scooped up a staggering 41,032 shares of Coinbase Global Inc. (COIN), valued at a cool $9.3 million. This latest acquisition is particularly amusing, considering it follows a rather hasty divestment of $4.3 million worth of COIN stocks just two months prior. One can only imagine the boardroom discussions: “Buy high, sell low, repeat!”

The buying spree was executed through the ARK Next Generation Internet exchange-traded fund, a rather grandiose title for an actively managed ETF that aims for long-term capital growth by investing in companies that are, in theory, relevant to the next-generation Internet. One can only hope they have a good map for this journey, as the road seems fraught with peril.

As Coinbase shares have been floundering like a fish out of water, ARK Invest has decided to buy the dip—an act that could be likened to purchasing a ticket to a sinking ship. Just last week, COIN shares took a nosedive of over 5% after BofA Securities, in a fit of pessimism, slashed its price target from $363 to a mere $311. Apparently, they cited growing competition and revenue pressures, which sounds suspiciously like a polite way of saying, “Good luck with that!”

Analysts, those ever-optimistic harbingers of doom, have warned that traditional financial firms entering the crypto arena could squeeze Coinbase’s transaction revenue, which, let’s face it, is the company’s bread and butter. Or perhaps more accurately, its Bitcoin and butter. 🥖

As of the latest reports, Google Finance has indicated that COIN closed at $212.49 on February 25, down 6.42% for the day and over 20% in the past week. It’s a wonder they haven’t started handing out life jackets to investors at this point.

Coinbase stocks have also been caught in the tempest of the crypto market, with a staggering $1 billion in liquidations over the past 24 hours, all triggered by none other than Donald Trump’s announcement of new tariffs on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. Because nothing says “let’s invest in crypto” like a good old-fashioned trade war! 🎉

Investors, in a state of mild panic, are understandably concerned that rising costs could stoke the fires of inflation, leading to more economic uncertainty. This, in turn, has pushed tech stocks and risk assets like Bitcoin further into the abyss.

At the time of writing, Bitcoin was down 3.5% for the day, languishing at $88,534—levels reminiscent of a bygone era last seen in November of the previous year. Meanwhile, the total crypto market capitalization has slipped 3.2% to a paltry $3.04 trillion, while the tech-heavy Nasdaq Composite has also taken a hit, sliding 1.35%. It’s a veritable symphony of despair!

Yet, in a twist that would make even the most seasoned soap opera writer blush, ARK Invest appears to be bullish on Coinbase. This optimism likely stems from the company’s unexpectedly robust Q4 earnings, which showcased a 138% increase from 2023, beating the $1.88 billion estimate from LSEG analysts. Perhaps they’ve found a secret sauce after all!

Moreover, the U.S. Securities and Exchange Commission has decided to drop its lawsuit against Coinbase, which was one of the commission’s most significant crypto-related enforcement actions under the previous chair, Gary Gensler. One can only assume that the SEC has decided to focus its energies elsewhere—perhaps on more pressing matters, like regulating the price of avocado toast.

In a final flourish, ARK Invest also offloaded 98,060 shares of the ARK 21Shares Bitcoin ETF (ARKB) from its ARKW fund, valued at approximately $8.6 million based on the ETF’s closing price of $87.86 on Tuesday. It seems that in the world of finance, one must always be prepared to dance the tango of buying and selling,

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2025-02-26 10:16