Cathie Wood, CEO of the American investment firm Ark Invest, explained the reasoning behind selling Coinbase’s stock (COIN).
In a Thursday “Ask Me Anything” Q&A session, a user inquired about Ark Invest’s rationale for “dumping” its Coinbase shares. Wood responded, “We are not dumping. This is what active management is all about.”
“Coinbase has increased roughly 9-fold since Spring of 2023,” Wood continued. “It has been more than 10% of the portfolio. We are simply taking profits. It is still the number 1 position and we are redeploying those profits into stocks that, just like Coinbase roughly a year ago, have been hurt by very short-term news, including Tesla, and a lot of them are in the life science space.”
Ark Invest offloaded 74,291 Coinbase shares worth $20.8 million on March 26, two days before the Q&A session, as Coinbase stock rose 10% in value. A month earlier, the firm sold off 96,435 COIN shares for $16 million, The Block previously reported.
COIN closed at $265.12 on March 28, a gain of 3.28% for the day, according to Yahoo Finance.
Ark Invest co-sponsors spot bitcoin ETF ARKB with the digital asset investment firm 21 Shares. ARKB brought in $195.5 million in volume on March 28, according to The Block’s Data Dashboard.
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