Mar 09, 2023

ARK Invest Unfazed by Coinbase Price Drop, Keeps Buying Stock

As the crypto space continues to evolve, ARK Invest has remained a firm “buy” on Coinbase (BTC) stock, despite recent market volatility and bankruptcy concerns surrounding a major Coinbase partner, Silvergate Bank. Data shows that ARK has continued to purchase Coinbase shares, with the most recent buy-in of 47,568 shares on March 7th.

Coinbase has seen a decrease of almost 30% in its stock value since February, dropping from local highs of $87.50 to current levels of $61.69. However, ARK and its CEO Cathie Wood have remained steadfast in their commitment to the crypto space, expressing excitement at Coinbase’s announcement of its Ethereum layer-2 network, Base.

“In our view, Coinbase’s decision to build and integrate its services into a decentralized crypto infrastructure highlights its deep alignment with the fair, transparent, and accessible financial services that public blockchains aim to offer,” ARK stated in a recent newsletter.

The purchase of Coinbase shares has come at a cost, with ARK’s cost basis currently at $254 per share, far in excess of its current value.

The Grayscale Bitcoin Trust (GBTC) has also seen a modest uptick in value as the week began, as Grayscale continues its long-running battle to convert and launch GBTC as an ETF in the United States. A court is currently deciding whether the Securities and Exchange Commission has the right to keep denying the launch of the first Bitcoin spot price ETF.

ARK holds 5.53 million GBTC shares, and while the trust remains near a record discount to the Bitcoin spot price, with its shares trading at an implied price nearly 50% lower than BTC/USD, statistician Willy Woo has warned that approval of the GBTC spot ETF could “dump the price of BTC and pump the ETF.”

As the web3 space continues to grow, ARK Invest is demonstrating its commitment to the crypto market by continuing to purchase Coinbase shares and increasing exposure to assets such as GBTC.

The firm is also exploring ways to promote and market NFTs, with plans to launch a new NFT marketing agency in the coming months. The agency will focus on Twitter NFT marketing, helping creators to promote and sell their NFTs using the platform.

ARK is also looking to expand its web3 agency, offering services such as NFT promotion, NFT marketing, and selling NFTs. ARK hopes that these services will help to further the growth of the web3 space, and enable creators to make the most of their NFTs.

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