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 …