Cathie Wood Puts In Another $29M In Coinbase, Showing Conviction In Crypto Stock Amid Sell-Off

Cathie Wood-led Ark Investment Management on Wednesday further raised its exposure in Coinbase Global Inc (NASDAQ: COIN) on the day shares of the cryptocurrency exchange crashed after it reported a first-quarter loss and a significant drop in trading volume.

St. Petersburg, Florida-based Ark Invest scooped up 546,579 shares, estimated to be worth $29.4 million, in Coinbase.

Shares of the cryptocurrency exchange platform closed 26.4% lower to $53.7 on Wednesday. The stock is down 78.6% year-to-date.

The cryptocurrency exchange swung to a net loss of $430 million for the first quarter, compared with a $771 million profit reported in the first quarter of 2021. The exchange recorded $309 billion in overall trading volume, down 44% from the last quarter.

See Also: Coinbase CEO Armstrong Clarifies New Disclosure Does Not Mean Bankruptcy Risk

Coinbase allows the trading of cryptocurrencies like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE).  

Ark Invest owns shares in Coinbase via three of six actively traded ETFs, the Ark Innovation ETF  (NYSE: ARKK) , the Ark Fintech Innovation ETF  (NYSE: ARKF), and the Ark Next Generation Internet ETF (NYSE: ARKW).  

The three ETFs held 6.97 million shares, worth $510 million, in Coinbase prior to Wednesday’s trade.

Ark Invest also scooped up 563,322 shares, worth $1.43 million in Velo3D Inc (NYSE: VLD), a 3D-printing technology firm that counts Tesla Inc (NASDAQ: TSLA) CEO Elon Musk's SpaceX among its key customers.

Velo3d closed 5.6% lower at $2.54 on Wednesday and is down 67.6% year-to-date.

See Also: Cathie Wood Adds $1.1M Stake In This 3D Printing Partner Of Elon Musk's SpaceX

Photo courtesy of Ark Invest.