Cathie Wood’s Ark Investment Management has bought over 1.3 million shares of Coinbase Global since the start of November, and 450,000 shares of Grayscale Bitcoin Trust (GBTC), according to data by Bloomberg.
Ark’s shopping spree started after the contagion from FTX’s collapse extended bearish momentum for cryptocurrencies and companies.
The 1.3 million newly-acquired Coinbase shares, currently worth around US$53.5 million, increased Ark’s total holdings by around 19% to 8.4 million shares. The company now owns around 4.7% of Coinbase’s total outstanding shares, Bloomberg reported.
Ark Next Generation Internet has bought 450,000 shares of GBTC since the start of last week, while Ark Fintech Innovation purchased over 200,000 shares of crypto bank Silvergate Capital.
Both Coinbase and Silvergate Capital stocks have shed over 80% of their value this year, exceeding the 65% decline in Bitcoin and Ethereum.
Ark’s Coinbase investment comes even after analysts downgraded the stock this month, slashing its price target from US$77 to US$50.
Coinbase Global was down 8.9% in the past day, trading at US$41.23 at 9.50 p.m. in Hong Kong. GBTC was down 0.84% in the same period, changing hands at US$8.28 according to Yahoo Finance data.
See related article: Ark Invest swoops in to buy US$21.4 mln in Coinbase shares