Cathie Wood’s Ark Invest fund ditches Coinbase stocks for Shopify

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Cathie Wood’s Ark Invest fund sold over 1.4 million Coinbase shares following news that the Securities Exchange Commission (SEC) intends to launch an investigation into the centralised crypto exchange.

The US$77mln offload was announced in an internal email circulated on Wednesday July 27.

Coinbase has been battered by bad press time and again this year, including insolvency rumours, accusations of securities violations and arrests of former employees on insider-trading charges.

Shares in the NASDAQ-listed exchange responded to the litany of controversies by shedding 80% of its price year to date.

What else is Cathie selling?

A long-term Bitcoin evangelist, Cathie Wood first went long on Coinbase with a US$250mln purchase upon the exchange’s public debut in April 2021.

Through Ark Invest, she has since bought the dip multiple times, so this latest offload comes as a surprise, not to mention another blow to bruised Coinbase investors.

The trading statement seen by Proactive Investors shows that Wood also disposed of shares in the Robinhood exchange, albeit a modest half million. and 1Life Healthcare were also on the chopping block.

On the buy side, a US$59mln position on e-commerce platform Shopify (TSX:SH., NYSE:SHOP) was opened, alongside a portfolio of life sciences companies.

On the bright side, Coinbase shares are up slightly over 4% in Wednesday’s trade.