Cathie Wood's ARK ignores Silvergate, buys Coinbase stock for 6th straight month
Bitcoin (BTC) exchange Coinbase has remained a firm “buy” for ARK Invest throughout its recent price drop.
The latest data shows ARK continuing to buy COIN shares despite bankruptcy concerns over Silvergate bank, a major Coinbase partner.
In the latest demonstration of its fearless approach to the crypto space, ARK purchased another 47,568 shares of Coinbase on March 7.
These join the around 6 million shares already held in ARK’s ARKK exchange-traded fund (ETF) at the start of the month, and are already its third purchase of the week.
COIN itself, however, has been under pressure since the start of February, dropping from local highs of $87.50 to current levels of $61.69 — a decrease of almost 30% in just over a month, according to data from TradingView.
While Silvergate precipitated fresh scrutiny when it comes to crypto exchanges in particular, events have appeared not to faze ARK and CEO Cathie Wood, known for bucking the trend and increasing exposure to assets such as COIN even during the 2022 bear market.
In a recent edition of its weekly newsletter released on Feb. 27, ARK hinted at its rationale, voicing excitement at Coinbase announcing its Ethereum Layer-2 network, Base.
“In our view, Coinbase’s decision to build and integrate its services into a decentralized crypto infrastructure highlights its deep alignment with the fair, transparent, and accessible financial services that public blockchains aim to offer,” it wrote.
The buy-ins have come at a price — the firm's cost basis is currently at $254 per share, far in excess of their current value.
Also benefiting this week is the largest Bitcoin institutional investment vehicle, the Grayscale Bitcoin Trust (GBTC).
Related: GBTC approval could return a ‘couple billion
Read more on cointelegraph.com
