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ARK Invest Purchases 238,000 Coinbase Shares Amid FTX Fallout

Cathie Wood's ARK Investment Management buys additional Coinbase shares as the crypto exchange navigates the FTX collapse.
Published on 2022-11-11

ARK Invest Boosts Coinbase Stake

Cathie Wood’s ARK Investment Management has purchased 238,000 additional shares of Coinbase (NASDAQ:COIN), signaling confidence in the cryptocurrency exchange amid the FTX fallout. Earlier this week, ARK Invest acquired 420,949 shares worth over $21 million, expanding its position in Coinbase.

Coinbase’s Minimal Exposure to FTX

Coinbase announced it has limited exposure to FTX, with only $15 million invested to support business operations and customer trades. The exchange emphasized that all customer assets are fully backed and disclosed in audited reports. Additionally, Coinbase does not hold any FTX tokens (FTT), which saw an 80% price drop on November 8.

Analyst Insights and Stock Performance

Oppenheimer analyst Owen Lau noted that Coinbase could experience a potential 90% surge despite the FTX crisis. However, he cautioned that crypto price pressures may weigh on COIN until contagion risks are contained. Coinbase shares dropped 22% on November 9 but rebounded 12% the next day, trading at $51.50.

ARK’s move highlights its long-term confidence in Coinbase’s resilience and growth potential in the cryptocurrency market.

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