Ark Invest sold 25,662 Coinbase shares from two exchange-traded funds on Thursday, according to the company’s latest trading filing.
The investment firm sold 22,690 shares ($5.7 million) in the Innovation ETF (ARKK) and 2,972 shares ($742,000) in the Next Generation Internet ETF (ARKW).
Yesterday’s sale of $6.4 million worth of COIN Ark marks the first major Coinbase stock sale since selling $21 million worth of stock on March 26.
Ark’s investment strategy aims to ensure that individual holdings do not account for more than 10% of the ETF’s portfolio in order to maintain diversification within the fund. This means that if Coinbase’s stock price continues to rise relative to its other holdings, it will likely continue to rebalance the fund’s weights.
During a Q&A session on social platform Reddit last week, when a user asked about the company’s rationale for “dumping” Coinbase stock, Ark Invest CEO Cathie Wood responded, “We don’t dump. That’s the whole point of active management.”
“Coinbase has increased approximately 9x since the spring of 2023,” Wood added. “It’s over 10% of the portfolio. We’re simply taking profits. We’re redeploying those profits into stocks that are still in the top spot and have suffered losses for a very short period of time, like Coinbase did about a year ago. Tesla Many of the end-of-semester news stories are in the life sciences field, including .”
Coinbase remains the largest holding within the ARKK ETF, with a 9.9% weighting, according to the company’s latest disclosure. However, Coinbase has fallen to the second-largest holding in the ARKW fund, with a 10.1% weighting. This comes just behind Ark’s own spot Bitcoin ETF (ARKB) at 10.2%.
The market value of ARKK’s Coinbase holdings is $708.1 million, while ARKW’s COIN weight is valued at $168.8 million at current prices. Overall, ARKK and ARKW funds are up 29.4% and 58.2%, respectively, over the past year.
Oppenheimer raises Coinbase stock price target to $276
Ark Invest’s latest sale comes as New York-based investment banking and financial services firm Oppenheimer yesterday raised its target for Coinbase’s stock price to $276 from its previous target of $200, while also maintaining a Buy rating.
“Digital asset adoption continued even after the approval of the spot Bitcoin ETF in January,” Oppenheimer Managing Director Owen Lau said in a memo. “We saw COIN’s trading volume in the first quarter of 2024 increase by 95% and 107% compared to the previous quarter, respectively. “It is estimated that it will increase,” he said. “It will increase to $300 billion every year.”
Oppenheimer’s price target is 10.5% higher than Coinbase’s closing price of $249.61 on Thursday. COIN fell 0.8% yesterday, but is up 8.5% in the past month and 44.3% year-to-date, according to TradingView.
COIN/USD price chart. Image: TradingView.
Coinbase is currently valued at $46.4 billion, according to The Block’s data dashboard.
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