Ark Invest sold 77,561 shares of Coinbase stock worth $20.4 million across two exchange-traded funds on Thursday.
The Cathie Wood-led investment firm sold 63,627 shares, or $16.7 million, in the Innovation ETF (ARKK) and 13,934 shares, or $3.7 million, in the Next Generation Internet ETF (ARKW), according to the company’s latest transaction filing.
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. That means if Coinbase’s stock price continues to rise relative to the fund’s other holdings, it will likely continue to rebalance its weights.
According to the company’s latest disclosure, Coinbase is the second-largest holding within the ARKK ETF, with a weighting of 9.7%, behind Tesla’s 9.8%. Coinbase is also the second largest holding in ARKW with a 9.9% weighting. This comes right behind Ark’s own Spot Bitcoin ETF (ARKB), which accounts for 10.2% of the fund.
The market value of ARKK’s Coinbase holdings is $696 million, while ARKW’s COIN weight is valued at $169 million at current prices. Overall, ARKK and ARKW funds are up 24% and 55%, respectively, over the past year.
Coinbase’s stock was trading at $263.01 at market close on Thursday, up nearly 5% on the day and more than 7% for the week, according to TradingView. The stock is up 52% year-to-date and is currently within 25% of its previous all-time high of $342.98 set in November 2021.
COIN/USD price chart. Image: TradingView.
Coinbase is currently valued at $48.9 billion, according to The Block’s data dashboard.
Ark invests in OpenAI for its venture fund.
Ark Venture Fund, a private fund that is not listed on the stock exchange like the company’s ETFs, confirmed yesterday, April 10, that it had invested in OpenAI for the first time. OpenAI CEO Sam Altman is also the co-founder of eyeball-scanning. Worldcoin, a “private proof” cryptocurrency project.
“OpenAI is at the forefront of the Cambrian explosion of artificial intelligence capabilities, having made some of the most impactful breakthroughs in fundamental AI research, including the GPT and DALLE series models, and launching ChatGPT, the first major consumer application of generative AI. “It is the fastest growing application in history to reach 100 million active users.” Ark Invest wrote in an email to customers seen by The Block on Thursday.
Ark’s venture funds aim to own stakes in companies across the private and public market life cycle, from early stages to large-scale enterprises. According to its portfolio page, the fund has generated a 21% return since its launch in 2022.
Ark Venture Fund previously invested in OpenAI competitor Anthropic, which is reportedly keen to find a buyer for shares owned by defunct cryptocurrency exchange FTX.
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