Despite the drop in Coinbase’s stock price due to its legal battle with the US Securities and Exchange Commission (SEC), Cathie Wood remains bullish on the cryptocurrency exchange. As a result, ARK Invest already bought another stake in Coinbase in early May.
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ARK Invest buys more Coinbase shares
ARK Invest, the investment management firm founded by legendary investor Cathie Wood, marked International Workers’ Day and bought 129,604 shares of Coinbase for its exchange-traded fund (ETF) ARK Innovation on May 1st, according to an investor notification to Cointelegraph.
Moreover, the investment firm also bought 23,456 shares of the cryptocurrency exchange for the ARK Next Generation Internet ETF and 15,809 shares for the Fintech Innovation ETF. The entire purchase amounted to a total of 168,869 Coinbase shares worth about $8.5 million.
According to the data, the purchase represents nearly 50% of all Coinbase shares purchased by ARK last month. In April, ARK sourced a total of 304,300 shares worth $17.5 million. Previously, ARK bought 2.4 million shares in March for about $117 million.
ARK’s latest purchases come as Coinbase shares continue their discount. On Monday, May 1sty, the cryptocurrency exchange’s share price fell 6.8% on news of a new class action lawsuit alleging that the exchange violated privacy laws.
Coinbase filed a motion against the SEC on April 25th
Overall, Coinbase’s shares have fallen more than 20% over the past month, dropping from a high of nearly $72 in April to $50.1 on Monday, May 1st.
The sharp drop in Coinbase’s stock price came amid ongoing actions against the exchange by the US Securities and Exchange Commission. On March 22nd, the securities regulator sent Coinbase a notice, suggesting enforcement action against the exchange.
In response, Coinbase filed a motion against the SEC on April 25th, asking the regulator to answer 50 questions about the regulatory treatment of certain digital assets. The case is still pending, and while we do not yet know the outcome, its continuation does not favorably affect Coinbase’s stock price.
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