Crypto exchange Coinbase has seen its stock plummet by more than 17% this week as a result of the crisis in the cryptocurrency market caused by the collapse of crypto-friendly Silvergate Bank. Ark Invest, helmed by famed investor Cathie Wood, used this opportunity to add more Coinbase stock to its portfolio.
According to emailed transaction report seen by CoinDesk, Ark Invest bought more than 350,000 Coinbase shares, spending $20.6 million on the acquisition. This represented the biggest single-day investment in the crypto exchange Ark Invest made in 2023. Back in January, it obtained 333,637 shares in one purchase.
The investment management firm split the spending spree between its ARK Innovation exchange-traded fund (301,437 shares) and Next Generation Internet exchange-traded fund (52,525 shares)
With the latest purchase, Ark Invest has 9.9 million Coinbase shares, which are valued at $529.05 million based on Friday’s closing price. This means that the company now owns close to 4% of the U.S.-based crypto exchange. This is in line with Wood’s bullish stance on crypto and belief that Bitcoin is heading to the $1 million mark at some point in the future.
Coinbase stock saw an 8% slide on Friday alone, bringing its value to $53.44 per share. However, this still represents a 59.05% year-to-date jump.