Cathie Wood, CEO of Ark Invest (a popular investment firm), has announced that Ark Invest has sold 1.4 million Coinbase (COIN) shares in the market. This comes as a big blow to the cryptocurrency exchange, after Coinbase has fallen by more than 77.48% in market value since the beginning of this year.
Three funds of Woods Ark Investment Management sold a total of more than 1.4 million shares of Coinbase Global (COIN) on Tuesday, as announced the company on Wednesday. Ark Invest is a popular investment company that focuses on technological innovation and disruptive technology. Under Wood’s reign, Ark Invest has grown rapidly during the bull market in 2021 and has surged in popularity.
The sale of Coinbase shares is striking in view of Coinbase’s sharp price decline over the past year. Coinbase has peaked from over $400 a share on its first day of trading in 2021 to a low of $40.30. Right now, Coinbase is trading above $52, meaning Ark Invest will likely have to sell a large chunk of their 1.4 million shares at a steep loss.
Why Ark Invest is selling their Coinbase shares
The sale of Coinbase shares does not come as a complete surprise. Coinbase has been receiving a lot of criticism in recent days. For example, the US Securities and Exchange Commission (SEC) is investigating the company in connection with trading in tokens that the company should have registered as securities.
In addition, a Coinbase executive was recently arrested on suspicion of insider trading.
Cathie Wood Excited About Bitcoin
Cathie Wood has made a name for herself in the investment world after making several successful investments with her investment company Ark Invest, the most successful being her investment in Tesla more than half a decade ago. In addition to investing in publicly traded companies, the CEO of Ark Invest focuses a lot on crypto and in particular bitcoin (BTC).
Earlier, Wood announced that he expected bitcoin could potentially be lifted to $500,000 if institutional money invests in bitcoin. In addition, in May, Cathie Wood predicted that bitcoin will not remain in a bear market for much longer.
