Cathie Wood buys the dip

Cathie Wood buys the dip

Cathie Wood’s ARK Invest has benefited from the bear market and bought over a million shares of Coinbase this month.

ARK buys Coinbase shares

Prominent investor Cathie Wood is not deterred by the recent market turmoil. As the FTX contagion spreads, many investors and companies are considering exiting their crypto holdings. As a result, stocks have suffered significantly. Coinbase shares, for example, have fallen to all-time lows after falling about 20% over the past week. When the exchange went public in April 2021, the price of each share was $430. Last Monday, it closed the trading session at just $41.23. Analysts from Bank of America and Daiwa Securities cut Coinbase shares this month, and the company now has the fewest “buy” recommendations in more than a year.

However, for Cathie Wood, CEO of ARK Invest, falling stock prices presented a unique investment opportunity. In the month of November, Wood’s company bought more than 1.3 million shares of Coinbase. The total value of these shares is approximately $53 million. As of now, ARK owns Invest 8.4 million shares, which is approximately 4.7% of Coinbase’s total shares outstanding. The company holds most of its Coinbase shares in its flagship fund, ARK Innovation ETF.

Other Shares

Wood hasn’t just held on to Coinbase stock. So far in November, ARK Invest has bought shares of Grayscale’s Bitcoin ETF, Grayscale Bitcoin Trust (GBTC), and crypto bank Silvergate Capital. Both companies have suffered from the 2022 bear market. Grayscale lost about 76% of its valuation in 2022, while Silvergate has lost 80%. However, this did not stop Wood from making major purchases. Last week, ARK Invest bought approximately 315,000 shares of GBTC worth $2.8 million. This latest purchase has increased ARK’s GBTC holdings to nearly 6.357 million, representing 0.4% of the company’s total investments.

Wood’s Prediction – Will BTC Hit $1 Million?

Wood has been a strong supporter of Bitcoin. Earlier this year, before the first blow of 2022 i.e. the collapse of the Terra ecosystem, Wood had predicted that the BTC price would reach a million dollars by 2030. However, the price of the crypto was $41,000 at the time. It has since taken a serious hit due to market inflation, the crypto winter, the crash of the Terra ecosystem, and the subsequent FTX debacle. It currently costs a measly $16,442, significantly down from its all-time high of $68,789 a year ago.

Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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