ARK Invest, the investment management firm founded by legendary investor Cathie Wood, has bought an additional stake in cryptocurrency exchange Coinbase.
On May 1, ARK purchased 129,604 shares of Coinbase stock for its ARK Innovation exchange-traded fund (ETF), according to an investor note, The investment firm also bought 23,456 shares of Coinbase for its ARK Next Generation Internet ETF and 15 ,809 shares for its Fintech Innovation ETF. The total purchase amounted to 168,869 Coinbase shares, worth approximately $8.5 million.
The acquisition represents nearly 50% of the total Coinbase stake that ARK purchased last month. In April, ARK acquired 304,300 shares worth $17.5 million. This follows ARK's purchase of 2.4 million shares for about $117 million in March. ARK' s latest purchase comes as Coinbase stock sees another wave of red. Shares of Coinbase fell 6.8% on Monday on news that a new class-action lawsuit accused the exchange of violating privacy laws.
Coinbase shares have plunged more than 20% in the past month, from a high of nearly $72 in April to as low as $50.1 on Monday, according to TradingView. Coinbase shares fell sharply amid the ongoing action by the US Securities and Exchange Commission (SEC ) against Coinbase. On March 22, the securities regulator sent a Wells notice to Coinbase recommending enforcement action against the exchange. In response, Coinbase filed a motion with the SEC on April 25 asking the regulator to answer 50 questions about its regulation story treatment of certain digital assets.
