Cathie Wood’s Ark Invest Offloads Coinbase (COIN) Shares Ahead Earnings

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As a researcher with a background in finance and experience following the crypto market, I’m keeping a close eye on Cathie Wood’s recent decision to sell Coinbase shares through her investment firm Ark Invest. The timing of this sale, just before the release of Coinbase’s Q2 earnings report, has added fuel to concerns about the overall health of the cryptocurrency exchange and the market as a whole.

Cathie Wood’s investment company, Ark Invest, decreased its ownership of Coinbase (COIN) stocks prior to the release of the crypto exchange’s Q2 earnings results. The value and sentiment towards cryptocurrencies, including Bitcoin, have declined, leading to reduced trading activity on exchanges. On average, COIN shares have been traded at around $230 during the past six months.

Cathie Wood Sells Coinbase Shares

Cathie Wood’s Ark Invest disposed of approximately $450,000 worth of Coinbase shares, representing around 2046 units, according to CoinGape’s observed trades. The Ark Fintech Innovation ETF (ARKF) executed this sale during Friday’s trading session, reflecting the persistent bearish mood in the crypto market.

The Crypto Fear and Greed Index currently stands at 25, indicating “extreme fear,” as Bitcoin and other cryptocurrencies plummeted to their lowest levels since February. Despite this downturn, market analysts maintain a positive outlook for the crypto sector, predicting a rebound in the coming months due to increased likelihood of Federal Reserve interest rate reductions in September. Historically, the third quarter has been characterized by lackluster performance in the crypto market, which may have contributed to the recent sell-off as per ARKF’s assessment.

As an analyst, I’ve observed that Ark Invest has been actively managing its portfolio by selling COIN shares and allocating funds to other investments. This was done despite recent market volatility. Notably, Coinbase (COIN) still holds the largest position in the ARKF fund, accounting for 10.28% of the total assets or over $90 million.

Coinbase Earnings Adds As Another Factor

The latest unloading of COIN shares by Cathie Wood’s ARK Invest signifies apprehension regarding potential additional sales, with Coinbase’s Q2 earnings report scheduled for release in August being a possible instigator.

Wall Street analysts have expressed caution about Coinbase’s earnings, predicting a potential 31% decrease in earnings per share (EPS). Despite reporting increasing revenue and net income for three consecutive quarters, these analysts hold a bearish view based on their estimates. According to CoinGape, this pessimistic forecast stands in contrast to the company’s recent financial successes. Yahoo Finance supports this perspective with an anticipated EPS of $1.06 for the quarter.

The closing price of COIN was $218.02, which represented a 1.58% increase on Friday. This uptick can be attributed to optimistic macroeconomic developments and Bitcoin’s recovery. However, the value had dropped by 12% over the past month due to pessimism in the crypto market.

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2024-07-13 12:45