ARK Invest Sells $34 Million of Coinbase Shares, Creates Stir Prior to Earnings Report

By: Eva Baxter

As reported, ARK Invest, the renowned investment management firm, has initiated its first considerable sale of Coinbase (COIN) shares in over a month. The transaction involving more than 200,000 units of COIN shares concluded in a total value of approximately $34 million, based on the closing price as of February 14.

The sale, led by ARK Invest's Cathie Wood, is making headlines as it occurs amid a significant surge in Coinbase's stock value, largely credited to the ongoing uptrend in the cryptocurrency market. Notably, the trading giant's shares were up by nearly 7% in after-hour and pre-market trading since the market closure on February 14.

ARK Invest's move also coincides with JP Morgan's recent upgrade of Coinbase to 'neutral' status. The analyst upgrade is anticipated to further propel COIN's market performance. Market observers expect a substantial uptick in the company’s fourth-quarter revenues, following robust trading volumes observed in the closing quarter of 2021 when major digital assets displayed a bullish trend thanks to growing ETF approval prospects.

However, ARK Invest's offload decision takes on additional weight as Coinbase faces increasing regulatory scrutiny and continuing legal battles with the SEC over allegations of unregistered securities exchange operations - charges that the platform persists in vigorously contesting.