Ark Invest Buys Coinbase (COIN) Selling Tesla (TSLA), Adds Another $64 Million Worth COIN Shares on Day 3
Cathie Wood’s Ark Investments is going ultra bullish on its Coinbase (NASDAQ: COIN) bet! In just three trading sessions upon the listing of COIN shares on Nasdaq this Wednesday, April 14, Ark Invest has scooped over $400 million worth of COIN shares.
As per the Reuters report, on Friday, April 16, Ark added 187,078 shares of Coinbase worth $64 million at $342 per share. On Friday’s trading session, the COIN share price surged 5.96% ending the day at $342. The interesting thing here is that Ark’s aggressive purchase of Coinbase shares comes after liquidating a massive $99.5 million of its TSLA shares holdings.
However, Tesla still continues to be Ark Invest’s biggest position by value. The electric car maker has had a phenomenal ride on Wall Street since the breaking of the COVID-19 pandemic in March 2020 and becoming the largest automobile company in the world.
As it turns out, the recent purchase of COIN shares by Ark Invest comes through its three funds – the flagship ARK Innovation fund, the Fintech Innovation ETF, and the Next Generation Internet ETF.
Friday’s purchase of COIN shares by Ark Invest is over and above its $246 million investment on Day 1, and $110 million investment on Day 2. Thus, Ark Invest now holds over $400 million in COIN shares.
Analysts Giving $600 Price Target for COIN Shares
Although Coinbase hasn’t yet managed to hold up to $100 billion valuations as most of the market was expecting, analysts still remain bullish on the COIN stock for the long term. Recently, MoffettNathanson analyst Lisa Ellis stated that the price of COIN stock can surge all the way up to $600 adding that it’s a “must-own” for long-term investors.
Skybridge Capital founder Anthony Scaramucci also said that Coinbase’s Wall Street entry should serve as a wake-up call for banks who have been shunning Bitcoin and crypto for the last few years. While comparing Coinbase listing to Netscape IPO, Scaramucci calls it a “wake-up” moment for big-tech companies.
Interestingly, Binance which launched its crypto stock token started offering a trading facility for the Coinbase stock token (COIN/BUSD). This will allow retail investors to buy fractional Coinbase stocks and boost retail participation.
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