ARK Invest Reduces Coinbase Holdings
Despite a strong Q4 performance by Coinbase, ARK Invest, led by visionary investor Cathie Wood, has decreased its stake in the cryptocurrency exchange. The investment firm sold over 544,000 Coinbase shares, amounting to nearly $100 million, in a move that aligns with its investment strategy.
Impressive Earnings Don’t Deter Strategy
Coinbase’s Q4 earnings report exceeded expectations with a revenue of $953.8 million, yet ARK Invest’s decision to offload part of its holdings in February reflects a disciplined adherence to its broader investment approach.
Cathie Wood’s Confidence in Coinbase
Wood’s outlook on Coinbase remains positive. In a recent interview, she praised the platform’s execution and hinted at a nascent rally for the company’s share price. “This is part of a journey,” Wood stated, reaffirming her belief in the long-term potential of the cryptocurrency exchange.
ARK’s Remaining Stake in COIN
Despite the recent sales, ARK Invest still holds a significant position in Coinbase, with over 4.8 million shares. The firm’s actions reflect a balance between profit-taking and confidence in the exchange’s future growth prospects.
Q4 Growth and Future Prospects
Coinbase’s Q4 results showed a substantial 45.2% increase in revenue over the previous quarter, with a net income of $273 million. These figures suggest a robust financial standing for the exchange, bolstering investor confidence despite ARK’s divestment.
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