ARK Invest Buys Almost 420K Coinbase Shares Post SEC Lawsuit
- ARK Invest has bought another 419,324 shares of Coinbase (COIN).
- The shares dropped 20% on June 6 after the SEC announced its lawsuit against the exchange.
- Cathie Wood’s ARK fund holds a total of $647 million in COIN, and the holding cost is between $243 and $254.
- The company also purchased $9.2 million worth of COIN shares in February.
ARK Investment Management, an investment management firm based in the United States and founded by Cathie Wood, who is also the current CEO and CIO of the firm, continues to purchase additional Coinbase stock (COIN) despite the company’s involvement with the US Securities and Exchange Commission (SEC).
As per CathieSark data, Cathie Wood’s multiple ARK funds acquired a total of 419,324 shares of COIN stock on June 6, amounting to approximately $21.64 million. At present, Cathie Wood’s ARK fund holds a total of $647 million in COIN stocks, and the holding cost is between $243 and $254.
Recently, the SEC filed a lawsuit against crypto exchange Coinbase, which resulted in the firm’s stock price crashing almost 20% on June 6, the day of the lawsuit. While the future remains unclear for the exchange, it is important to note that the world’s largest crypto exchange, Binance, and its CEO, Changpeng Zhao, along with Binance.US have been sued by the US securities regulator.
Changpeng Zhao has been summoned by the US District Court for Washington, D.C., and has 21 days to respond to the order. He risks a judgment by default if he fails to acknowledge the summons within the given time. On the other hand, the lawsuit against Coinbase doesn’t mention CEO Brian Armstrong.
Meanwhile, Armstrong stated that he is “confident in the facts and laws” and ready to face the lawsuit filed by the SEC. He added that the SEC’s lawsuit against Coinbase is different from the “others” out there because it is “exclusively focused on what is or is not a security.” The SEC has named 13 cryptocurrencies in its lawsuit that it considers securities, including Polygon (MATIC), Solana (SOL), Cardano (ADA), and Filecoin (FIL).
It is crucial to mention here that this is not the first time ARK Invest has purchased Coinbase stock, but the investment management firm is following a trend. As reported earlier by Bitnation, the Cathie Wood-headed company purchased $9.2 million worth of COIN shares in February, with ARK Innovation ETF and the ARK Next Generation Internet ETF getting 139,105 and 23,220 shares, respectively.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
