Cathie Wood’s ARK Invest Sells $95 Million in Coinbase Shares, Buys $50.5 Million in AMD

Cathie Wood’s ARK Invest made significant portfolio adjustments on Monday, selling nearly $43.8 million worth of Coinbase (COIN) shares. This move comes as part of a broader strategy to cap any single holding at 10% of an ETF’s total value, a policy that ARK has been adhering to. Despite the sell-off, Coinbase remains ARK’s second-largest holding, sitting just below the 10% threshold at 8.84%. The offloading of COIN shares amounts to around $95 million based on COIN’s Monday closing price of $350.49. This decision was made as Coinbase stock continues to rally, briefly touching a record high above $380 on June 26.

ARK Invest’s latest trading move indicates a shift towards semiconductors, with Advanced Micro Devices (AMD) being an early beneficiary. On Monday, the firm acquired 356,275 AMD shares across three of its ETFs, including ARKK (Innovation), ARKW (Next Gen Internet), and ARKF (Fintech Innovation). With AMD closing the day at $141.90, this haul was worth around $50.5 million. The renewed bet on AMD follows a volatile stretch for the chipmaker as it struggles to maintain its position in the AI hardware race. Earlier this month, AMD announced a strategic partnership with HCLTech to build innovation labs focusing on artificial intelligence, cloud computing, and digital infrastructure. Analysts believe that this move can fuel optimism around the company’s next-gen AI chips.

The decision to sell COIN shares and buy AMD shares reflects ARK’s strategy of selling high and buying low, while keeping diversification in check. Despite bullish analyst coverage, ARK is playing it safe and locking in profits as COIN continues its impressive run. Bernstein recently slapped a $510 price target on Coinbase, likening it to “the Amazon of crypto.” However, ARK’s strategy mirrors its long-standing practice of selling high and buying low, while keeping diversification in check. COIN price has jumped by a massive 42% over the last month. Meanwhile, after ARK’s dumping, COIN is declining in the pre-market session by 2.4%, suggesting that it might drop to the $342 mark.

In addition to the COIN and AMD trades, ARK also reduced its position in Israeli defense firm Elbit Systems (ESLT). The firm sold 1,160 shares from its ARKX (Space Exploration) and ARKQ (Autonomous Tech & Robotics) ETFs, netting about $504,000. This move further underscores ARK’s commitment to maintaining a diversified portfolio and reallocating funds to areas with higher growth potential.