ARK Investment Sold 70,616 Coinbase Shares
Previously on April 15, ARK also sold a small number of COIN shares of its ARKW ETF, worth $824,000.
The American company ARK Investment Management, led by Cathie Wood, sold 70,616 Coinbase shares this Tuesday, for an amount of $15.1 million, in three of its EFTs.
The firm had also sold 45,915 shares of its EFT ARK Innovation, for $9.8 million, 17,755 shares of Next Generation Internet for $8.8 million, as well as 6,946 shares of Fintech Innovation for $1.5 million, according to data from the latest commercial report. issued by this company.
Thus, it is the first time in a month that ARK Investment sells a significant amount of Coinbase shares, after having disposed of Coinbase shares for $20.4 million on April 11, amid the increase in the share price.
Furthermore, ARK reported the acquisition, through its EFTs, of a combined total of 1,252,667 shares of Palantir, a software company, for an approximate amount of $29 million, based on the value of the shares on the day of the transaction.
ARK’s purchase of Palantir took place although Palantir’s shares were trading downwards, according to the publication of the financial results for the first quarter, and when the moderate forecasts of the experts were disclosed.
Palantir shares had previously fallen due to the investors’ negative reaction to the company’s neutral forecast for the second quarter and full year.
As reported a couple of days ago, Palantir shares plummeted 12% in pre-market trading after it emerged that respective sales for this year are lower than expected.
Analysts at Deutsche Bank say that “Palantir’s ability to drive further growth acceleration in 2024 is being constrained by its governance and international commercial businesses.” They add that they are “not yet seeing AI tailwinds similar to those at U.S. Commercial.”
Palantir, which builds big data and AI solutions for government organizations and corporations, increased its revenue guidance for 2021. However, the range between $2.677 billion and $2.689 billion fell behind the estimates.
Despite Sale, Coinbase Continues Significant Participation in ARK Investment EFTs
According to experts, ARK Investment’s current strategy is aimed at not allowing any share to absorb more than 10% of an ETF portfolio, in order to maintain diversification within its funds. This implies the possibility of the asset manager continuing to rebalance its holdings of Coinbase shares. This, if said shares increase relative to ARK’s other holdings in the ETFs.
According to the most recent data from ARK Investment, COIN is the third most significant holding in its ARK ETF, with an 8.2% stake, behind Tesla with 11.2% and Roku with 8.4%. Additionally, Coinbase shares represent the fourth-largest holding in ARKW, at 8.2%, preceded by the ARKB Bitcoin Spot ETF at 10.2%.
On the other hand, ARK Innovation ARKK’s Coin holdings currently have a market value close to $547 million. ARKW’s COIN weightings, meanwhile, are valued at $129 million, while those of ARKF, ARKW, and ARKF achieved 24%, 55%, and 61%, respectively, last year, attracting investor interest.
So far in 2024, Coinbase stock has gained 24%, although it remains 37.5% below its all-time high set in November 2021 of $342.98. Yahoo Finance has provided data that indicates the current value of Coinbase at $49,650 as one of the main references in the sector.
By Audy Castaneda