Cathie Wood's ARK Invest: Buying the Dip in Tempus AI and Coinbase, Selling Bitcoin ETF Shares

Amidst the recent market downturn, Cathie Wood's ARK Invest has made strategic moves, buying into Tempus AI Inc. (TEM) and Coinbase Global Inc. (COIN) while selling shares of its ARK 21Shares Bitcoin ETF (ARKB). These transactions reflect ARK's long-term investment philosophy and bullish outlook on the tech and crypto sectors.

Tempus AI: A Disruptive Force in AI and Genomics

ARK Invest purchased a significant number of shares in Tempus AI, a company specializing in AI-driven precision medicine and genomics. Despite mixed fourth-quarter financial results, ARK's confidence in Tempus AI's growth prospects is evident in its purchases. The firm's ARK Genomic Revolution ETF (ARKG) bought 78,570 shares, while the ARK Innovation ETF (ARKK) acquired a whopping 367,388 shares, totaling nearly $26.35 million at the latest closing price of $59.10.

Tempus AI's revenue was up 35.8% year-over-year, with data and services revenue growing 44.6% to $80.2 million. Genomics revenue grew 30.6% year-over-year to $120.4 million, and unit growth came in at 22.5% (Benzinga, 2024). ARK's investment in Tempus AI aligns with its focus on disruptive technologies and innovative companies with strong growth prospects.

Coinbase: Regulatory Clarity and Growth Potential

ARK Invest also bought into Coinbase, with its ARK Next Generation Internet ETF (ARKW) purchasing 41,032 shares. This move comes after the Securities and Exchange Commission (SEC) announced plans to drop its lawsuit against the crypto exchange, a case that had been ongoing for nearly two years. The regulatory development provides a more favorable environment for Coinbase, potentially leading to increased adoption and growth in the crypto exchange sector.



The SEC's action could boost investor confidence in Coinbase, as it indicates that the exchange is in compliance with relevant regulations. This increased confidence could lead to higher demand for Coinbase's stock, potentially driving up its price. With the lawsuit behind it, Coinbase can focus on expanding its services and growing its user base, presenting an attractive opportunity for investors like Cathie Wood.

ARK's Bitcoin ETF Sale: Rebalancing and Long-term Bullish Outlook

Despite the sale of 118,209 shares of its ARKB spot Bitcoin ETF, worth $7.76 million, ARK remains bullish on Bitcoin's long-term potential. In its "Big Ideas 2025" report, ARK predicts that Bitcoin could reach $1.5 million by 2030 under a bull-case scenario, driven by growing institutional adoption, integration into the global monetary system, and improving network fundamentals. Even in a bear-case scenario, ARK expects Bitcoin to reach $300,000 by 2030.

ARK's investment strategy aims to capitalize on long-term trends and disruptions, and Bitcoin's potential as a store of value and a decentralized, transparent monetary asset is a key part of this strategy. The firm's investment in the ARKB spot Bitcoin ETF, as well as its holdings in Coinbase and other cryptocurrency-related stocks, reflects its belief in the long-term potential of the cryptocurrency market.

In the context of ARK's overall investment strategy, the sale of ARKB shares is a tactical move to rebalance the portfolio and maintain diversification, rather than a reflection of a change in the firm's long-term bullish outlook on Bitcoin. As Cathie Wood has stated, "Bitcoin is on pace to meet our 2030 price targets," and ARK remains committed to its investment in the cryptocurrency market.

In conclusion, Cathie Wood's ARK Invest has made strategic moves, buying into Tempus AI and Coinbase while selling shares of its ARKB spot Bitcoin ETF. These transactions reflect ARK's long-term investment philosophy and bullish outlook on the tech and crypto sectors, driven by strong fundamentals, regulatory clarity, and the firm's commitment to disruptive technologies and innovative companies.