Cathie Wood-led Ark Investment Management on Tuesday liquidated a large chunk of Coinbase Global, Inc. (NASDAQ: COIN) shares amid a sell-off in the cryptocurrency exchange triggered by reports of an SEC probe into the listing of unregistered securities in its platform.
Ark’s Unprofitable Trade: Ark sold 1.42 million Coinbase shares, with its flagship ARK Innovation ETF (NYSE:ARKK) dumping 1.13 million shares and the ARK Next Generation Internet ETF (NYSE: ARKW) selling 174,611 shares. The ARK Fintech Innovation ETF (NYSE: ARKF) disposed of 110,218 shares.
Shares of Coinbase tanked 21% to close at $52.93 on Tuesday, taking their year-to-date losses to 79%. Ark had purchased COIN shares at an average cost of $254.65, according to Unusual Whales, and this suggests Ark may have lost about $280 million on the trades.
Coinbase weightings in the ARKK, ARKW, and ARKF are currently at 2.93%, 4.91% and 5.87%, respectively. The stock is ARKK’s fourteenth-biggest holding and the seventh and fifth biggest holding, respectively, for ARKW and ARKF.
Coinbase has been on a downslide since last week, retreating from $79 on Wednesday to a low of $52.63 on Monday, a peak-trough decline of about 33%.
Related Link: Cathie Wood’s Ark Expects Roku Stock To Soar About 550% In 4 Years
Other Key Trades: Ark, meanwhile, bought the dip in Canadian e-commerce retailer Shopify, Inc. (NYSE: SHOP). ARKK bought 1.3 million shares of Shopify, ARKW picked up 201,546 shares, and ARKF added 238,088 shares, with the combined purchase price valued at $55.7 million.
Shopify shares plunged 14.06% to $31.55 Tuesday after reports of a 10% global workforce layoff.
Ark also bought a cumulative 584,540 shares in Roku, Inc. (NASDAQ: ROKU), valued at $46.7 million.
ARKK closed Tuesday’s session down 4.78% at $43.47, according to Benzinga Pro data.