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A significant development occurred regarding the shares of the cryptocurrency exchange Coinbase. ARK Invest, owned by Cathie Wood, sold Coinbase shares worth $90 million. It seems that ARK Invest took advantage of the price increase following the positive fourth-quarter performance of the crypto exchange.
Sale of Nearly 500,000 Coinbase Shares
ARK Invest, a provider of investment solutions and one of the largest institutional supporters of Coinbase, sold approximately half a million COIN shares listed on Nasdaq for $90 million on Friday.
Cathie Wood’s investment firm disposed of a total of 499,149 COIN shares from its exchange-traded funds. Specifically, 397,924 shares from the ARK Innovation ETF (ARKK), 45,433 shares from the ARK Next Generation Internet ETF (ARKW), and 55,792 shares from the ARK Fintech Innovation ETF (ARKF) were sold.
The major sale was fueled by comments from analysts at firms like KBW, Wedbush, Canaccord Genuity, and JPM Securities. On the other hand, better-than-expected fourth-quarter results related to the cryptocurrency exchange Coinbase also caught the market’s attention.
Positive Results and Expectations
JP Morgan analyst Kenneth Worthington, while acknowledging the firm’s strengths and weaknesses, displayed a less positive outlook by claiming he was “still unsure of the real earnings impact.” This perspective contrasts with the positive view on Coinbase’s participation in a US spot Bitcoin ETF.
Coinbase’s shares surged approximately 27% to $180.31 last week after reporting optimistic fourth-quarter results. Following the results, KBW upgraded the stock from an “underperform” outlook to market performance and raised the price target from $93 to $160. Analysts from Wedbush, Canaccord Genuity, and JMP Securities also increased their price targets.
Lastly, Mizuho criticized Coinbase’s performance, maintaining its “underperform rating” and $60 price target. It should be noted that Coinbase is particularly popular among spot Bitcoin ETF issuers. The cryptocurrency exchange stands out with its custody solutions. Moreover, being in a market like America is its biggest advantage.
The rise in Coinbase’s share coinciding with the surge in the cryptocurrency market is certainly no coincidence. The enthusiasm in the crypto market is directly reflecting positively on the exchange’s shares.
