Cathie Wood's Ark Invest scoops up $13 million in Coinbase stock, its largest purchase of the crypto exchange this year

  • Ark Invest purchased $13 million worth of Coinbase stock, split between its ARKK and ARKW ETFs.
  • The famed money manager currently holds a 4.58% stake in the cryptocurrency company.
  • Shares of Coinbase are up 3.66% at $63.4 on Thursday.

Cathie Wood’s Ark Invest loaded up on $13 million worth of Coinbase stock on Wednesday, notching its largest single-day buy in the cryptocurrency exchange so far this year.

The famed money manager purchased 213,519 shares, which were split between its Ark Innovation (ARKK) and Ark Next Generation Internet (ARKW) exchange-traded funds. This is much higher than than the 133,321 shares Ark scooped up across all of last week. 

Ark’s combined Coinbase holdings are worth roughly $18 billion, with the investment firm having a 4.58% stake in the company. 

The buying-spree follows Coinbase’s fourth-quarter fiscal results on Tuesday. The company beat Wall Street’s earnings and revenue estimates but fell short on its number of reported users. 

Share of Coinbase are up 3.66% at $63.4 on Thursday. The company’s stock has been on a tear, surging 82% year-to-date amid a broader rally in the tech sector.

Meanwhile, ARKK logged its best month ever, surging 28% in January as well. The gains follow a low-performing year for the ETF, which sank almost 70% in 2022.

The rally was fueled by hopes that the Fed would loosen its stance on monetary tightening with high inflation appearing to be in the rearview mirror last month. 

“We are the new Nasdaq,” Wood told Bloomberg earlier this month, celebrating the fund’s performance. 

But since then, economic data indicating a still-robust labor market and sticky inflation have raised fears that the Fed may have to deliver even more aggressive rate hikes.