ARK Invest Buys $30M Coinbase Stake Amid 16.7% Stock Drop

Cathie Wood’s ARK Invest has continued to reinforce its position in the cryptocurrency sector by significantly increasing its stake in Coinbase during a sharp downturn in its stock price. Between July 15 and August 2, 2025, the firm’s ETFs—ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Frontier Tech ETF (ARKF)—added 94,678 shares of Coinbase (COIN), valued at approximately $30 million [1]. This purchase followed a recent one-day drop of 16.7% in Coinbase’s stock, marking one of its worst declines in months [2]. The move underscores ARK Invest’s long-standing strategy of “buying the dip” in volatile markets, especially within the crypto space.

Coinbase’s Q2 2025 earnings report revealed a revenue of $1.5 billion, below the expected $1.59 billion, leading to a significant drop in its stock price. The stock reacted with a 16% decline, signaling investor disappointment and highlighting the impact of earnings misses on market sentiment [1]. Despite the earnings shortfall, Coinbase reported a record $362 million gain from its crypto holdings, showcasing the potential upside within the sector even amid revenue challenges [1].

ARK Invest’s decision to increase its stake in Coinbase reflects a broader trend of institutional confidence in the long-term potential of crypto infrastructure and digital asset firms. The firm’s historical approach of accumulating shares during market dips has been a consistent theme, particularly in the crypto space [2]. This strategy appears to be paying off as major institutional players continue to expand their crypto holdings, signaling a shift toward more mature and diversified investment strategies [5].

Notably, the timing of ARK Invest’s purchases was not without contradiction. Just days before these large buy-ins, the firm had sold nearly $7 million worth of Coinbase shares [1], and on July 2, it had sold $47.9 million of COIN stock across its funds [5]. These contradictory moves suggest a dynamic and strategic approach to managing volatility in a sector where short-term fluctuations are common.

As the crypto market continues to navigate a period of uncertainty, ARK Invest’s actions may serve as a signal to other market participants that it is time to reassess exposure to crypto-related equities, particularly for those with a long-term investment horizon. The firm’s continued focus on disruptive technologies and digital asset infrastructure aligns with its broader vision of supporting innovation in emerging sectors [5].

Source:

[1] https://coinmarketcap.com/community/articles/688de17868cc6762938d9dc4/

[2] https://ca.finance.yahoo.com/quote/BMNR/news/

[5] http://www.msn.com/en-us/money/savingandinvesting/cathie-wood-sells-47-9-million-of-surging-crypto-stock/ar-AA1I7Bi9?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&ocid=BingNewsSerp&renderwebcomponents=1&wcseo=1