ARK’s Big Move: Coinbase Out, Tesla In
Cathie Wood’s ARK Invest made significant portfolio adjustments, including selling $25 million worth of Coinbase (COIN) stock and redirecting funds to Tesla (TSLA). On January 3, ARK sold more than 166,000 Coinbase shares as the stock fell 3% to close at $152.24. The sale is part of a broader pattern that has seen ARK sell more than $125 million worth of Coinbase stock since December 2023.
Tesla Takes the Stage: ARK’s New Bet
After the Coinbase selloff, ARK Invest did not sit still. Instead, it reinvested almost the same amount in electric car giant Tesla. ARK Innovation ETF (ARKK) purchased 91,194 shares of Tesla stock, and ARK Next Generation Internet ETF (ARKW) added 14,007 shares of TSLA stock to its portfolio. This move is consistent with ARK’s tendency to be an innovative and disruptive company.
Coinbase remains a key player in ARK’s strategy.
Despite this sale, Coinbase remains a large part of ARK’s investment strategy. The cryptocurrency exchange is the largest asset in the ARKF ETF portfolio, valued at over $145 million as of January 4. This suggests that ARK is diversifying but still sees value in holding a significant stake in Coinbase.
A December to Remember: ARK’s Aggressive Coinbase Selloff
ARK’s latest transaction is part of a larger pattern observed in December, when the company sold 237,572 shares of Coinbase stock across three funds. This massive sell-off occurred on December 5, the same day that Coinbase stock hit $140 per share and netted ARK at least $33 million. ARK Innovation ETF saw the largest decline with additional sales from ARK Fintech Innovation ETF and ARK Next Generation Internet ETF.
Beyond Coinbase: ARK’s Broad Investment Movement
In a notable change, ARK Invest liquidated its entire $200 million Grayscale Bitcoin Trust (GBTC) holdings on December 28. Accordingly, ARK allocated approximately $100 million from the sale of GBTC to the Bitcoin Futures ETF Bito. Repositioning in the cryptocurrency investment space.