Cathie Wood’s asset management company Ark Invest said it acquired Coinbase Global Inc. (COIN) and Robinhood Markets Inc. (HOOD) stocks, according to trade disclosures, as geopolitical concerns impacted global markets.
Ark disclosed it has acquired 22,452 shares of Coinbase stock through the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). Based on Coinbase stock’s closing price of $182.36, the acquisition is worth approximately $4.1 million.
Ark also purchased 158,587 shares of Robinhood Markets (HOOD), worth around $12 million based on HOOD’s closing price of $76.07 as of the close of the last trading session. The acquisitions represent Ark’s continued commitment to acquiring interests in companies that have a significant connection to the cryptocurrency ecosystem.
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The share prices of Coinbase and Robinhood each decreased during the regular trading session as all major market indexes decreased. COIN price dropped by $2.88 or 1.55% to $182.36, and HOOD decreased by $2.71 or 3.44% to $76.07, according to current TradingView data.
HOOD price. Source: TradingView
However, in premarket trading, both stock prices have increased in value. According to TradingView data, Coinbase increased to $192.58 from $182.36 and represents a gain of $10.22 or 5.60%. Robinhood rose to $78.57 from $76.07 and represents a gain of $2.50 or 3.29%.
Stock prices related to cryptocurrencies, including Coinbase and Robinhood, typically reflect overall sentiment regarding the cryptocurrency sector. During times of market turmoil, institutions tend to keep a close eye on these types of investments.
The filings by Ark reveal that the Coinbase and Robinhood acquisitions were part of a larger reallocation of actively-managed exchange-traded funds (ETFs) by the firm.
In addition to purchasing Coinbase and Robinhood stocks, Ark added exposure to other companies. These include Roblox, Shopify, Amazon, Draft Kings, CoreWeave, Genius Sports, BioNTech, and Eli Lilly.
Simultaneously, Ark reduced their holdings in Roku, Baidu, Taiwan Semiconductor Manufacturing, Nextdoor and Pager Duty, indicating the firm was reallocating within the technology and healthcare sectors. James Seyffart, an ETF analyst, posted on X, “Ark did a lot more trading today than I’ve seen lately.”
The recent purchase follows a series of changes Ark made to its Coinbase position over the past few months. Last month, Ark began purchasing Coinbase stock across its ARKK, ARKW, and ARKF ETFs again.
The total amount invested in Coinbase stock exceeded $15.2 million, after Ark previously reduced its exposure to this stock earlier in February.
Those reductions involved selling approximately $17.4 million of Coinbase shares on Feb. 5. Then, another sale of $22 million of Coinbase shares on Feb. 6, according to previous filings.
The recent accumulations indicate that Ark Invest is taking steps to prepare itself for long-term growth opportunities in crypto-related equities. This comes as the market continues to experience turbulent conditions.
Institutional investors’ willingness to add to their exposure to crypto-related companies during times of market downturns suggests long-term confidence in the digital asset sector.
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