Led by the well-known 'Cathie Wood', ARK Invest adjusted its portfolio again on 7/21 Eastern Time, selling $90.56 million worth of Coinbase shares as the stock reached a new high, while also reducing holdings in U.S. online brokerage Robinhood and Block, the payment platform founded by Twitter’s Jack Dorsey. This was also the first time ARK made a significant investment in BitMine, a company that reserves Ethereum (ETH), amounting to approximately $175 million.
After Coinbase reached a new high, ARK significantly reduced its holdings
On 7/21, ARK sold a total of 218,986 shares of Coinbase (COIN), valued at $90.56 million, through three of its ETFs:
ARK Innovation ETF (ARKK): Sold 174,746 shares
Ark Next Generation Internet ETF (ARKW): Sold 27,663 shares
ARK Fintech Innovation ETF (ARKF): Sold 16,577 shares
This wave of selling coincided with Coinbase's stock price hitting a historical high of $444.65 on 7/18. The surge was driven by the recent passage of the stablecoin bill (GENIUS Act) by the U.S. House of Representatives.
At the same time, Coinbase's trading app returned to the top 100 of the Apple App Store, marking its first appearance there since January of this year. On the day ARK sold shares on 7/21, Coinbase's stock closed at $413.63, down 1.47%, but rebounded slightly to $415 after hours, up 0.33%.
Robinhood and Block also had their holdings cut
In addition to Coinbase, ARK also sold other fintech stocks that day, such as:
ARKW sold 109,824 shares of Robinhood (HOOD): Cashing out approximately $11.46 million, with the stock price dropping 4.92% that day, closing at $104.34.
ARKF sold 90,061 shares of Block Inc. (XYZ): Cashing out approximately $7.03 million, but Block's stock price actually rose 7.22% that day, closing at $78.08.
Simultaneously increased investment in Ethereum reserve company Bitmine
Interestingly, while selling Coinbase, Robinhood, and Block, ARK also bought back 4,421,034 shares of Bitmine Immersion Technologies (BMNR), a Bitcoin mining company that reserves Ethereum (ETH), for approximately $175 million.
ARK continues to maintain a strategy of not exceeding 10% holdings
ARK has always adopted a policy of 'no single stock should exceed 10% of the fund's portfolio' to avoid concentration risk. When certain stocks exceed this limit due to price increases, ARK proactively adjusts and sells at highs to bring the holding ratio back to a reasonable range.
This reduction of holdings during Coinbase's new high, along with adjustments to Robinhood and Block's share ratios, reflects ARK's asset allocation strategy.
This article on ARK's Cathie Wood reducing holdings in Coinbase, Robinhood, and Block, while investing $175 million in Bitmine, first appeared in Chain News ABMedia.
