Cathie Wood: Sales of Coinbase shares not 'dumping' but active portfolio management
Companies • March 28, 2024, 4:31PM EDT
Published 1 minute earlier on
Quick Take
- Cathie Wood participated in an “Ask Me Anything” Q&A session on the social platform Reddit Thursday.
- In response to a user question on the matter, Wood said that selling Coinbase stock is part of active portfolio management.
- Ark Invest had offloaded $20.8 million worth of Coinbase shares two days prior.
Cathie Wood, CEO of the American investment firm Ark Invest, explained the reasoning behind selling Coinbase's stock (COIN). In a Thursday "Ask Me Anything" Q&A session, a user inquired about Ark Invest's rationale for "dumping" its Coinbase shares. Wood responded, "We are not dumping. This is what active management is all about." "Coinbase has increased roughly 9-fold since Spring of 2023," Wood continued. "It has been more than 10% of the portfolio. We are simply taking profits. It is still the number 1 position and we are redeploying those profits into stocks that, just like Coinbase roughly a year ago, have been hurt by very short-term news, including Tesla, and a lot of them are in the life science space." Ark Invest offloaded 74,291 Coinbase shares worth $20.8 million on March 26, two days before the Q&A session, as Coinbase stock rose 10% in value. A month earlier, the firm sold off 96,435 COIN shares for $16 million, The Block previously reported. COIN closed at $265.12 on March 28, a gain of 3.28% for the day, according to Yahoo Finance. Ark Invest co-sponsors spot bitcoin ETF ARKB with the digital asset investment firm 21 Shares. ARKB brought in $195.5 million in volume on March 28, according to The Block's Data Dashboard. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
About Author
MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.
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