Ark Invest, led by Cathie Wood, purchased almost $18 million worth of Coinbase (COIN) shares following the recent Wells notice from the US Securities and Exchange Commission (SEC).
The investment firm sold shares from its Fintech Innovation ETF before buying almost 269,000 COIN shares through its ARK Innovation and ARK Next Generation Internet ETFs. This move by Ark Invest to buy the dip shows that the firm has confidence in Coinbase’s future despite the recent SEC notice.
The investment firm bought over 300,000 COIN shares earlier in March, spending $20.5 million, but by March 22, the value had risen to almost $30 million. After selling 160,887 shares from its ARK Fintech Innovation ETF for $13.5 million, Ark Invest acquired another 268,928 shares worth $17.88 million.
It’s worth noting that Coinbase CEO and other insiders also sold shares before the Wells notice. Coinbase received the Wells notice from the SEC staff on March 22, indicating that the staff has recommended enforcement action against Coinbase for violating federal securities law.
The news caused Coinbase’s share price to dip, but Ark Invest’s recent purchase shows that it believes in the company’s future prospects.
