Cathie Wood's Ark Invest Buys $13.3M in Coinbase Shares Amid 38.8% Stock Drop

Cathie Wood’s Ark Invest has made a significant move by purchasing $13.3 million worth of Coinbase (COIN) shares on Monday. This acquisition comes as the COIN stock price has been under pressure, dropping 38.8% since the beginning of 2025, from $250 to under $160. The asset manager bought a total of 84,514 COIN shares across two of its exchange-traded funds (ETFs).

The ARK Next Generation Internet ETF (ARKW) acquired 64,806 Coinbase shares, valued at approximately $10.2 million, while the ARK Fintech Innovation ETF (ARKF) added 19,708 Coinbase shares, worth around $3.1 million. Following this purchase, Coinbase stock now represents 5.92% of ARKW’s portfolio, making it the fund’s fourth-largest holding. In ARKF, Coinbase shares account for 7.65% of the portfolio, making it the second-largest holding in the fund.

This investment by Ark Invest comes after a week where the Coinbase share price dropped by 10% amid a broader market correction. However, following the acquisition, the stock price bounced back by 2% to $159.40. Cathie Wood has been known for her investment strategy that focuses on new-age companies and future-driven stocks, which has generated strong returns for Ark Invest’s customers. This includes investments in companies like Coinbase, Robinhood, and Tesla.

Analysts have mixed opinions regarding the future movement of the COIN stock price. Popular crypto analyst Ali Martinez noted that the COIN price has broken out of a channel pattern, which could lead to a further drop to $100. However, other analysts believe that if institutional purchases, including those by Cathie Wood, help to defend the $145 support level for COIN, it could resume its upward trend to $200 and above.

In related news, Brian Armstrong, Chairman and CEO of Coinbase Global Inc., recently sold 14,000 shares of the company’s Class A Common Stock, valued at approximately $2.5 million. The sales were conducted on April 3 at prices between $168.22 and $169.65 per share and were part of a Rule 10b5-1 trading plan that Armstrong adopted in August 2024.