Cathie Wood Builds Up Stake In Coinbase Following FTX Collapse

Cathie Wood led ARK Investment Management on Tuesday sold over a million shares of Robinhood Markets Inc. HOOD-5.84% at an estimated valuation of over $9 million. Shares of the brokerage platform closed over 19% lower on Tuesday over the FTX saga.

Cryptocurrency exchange Binance signed a non-binding agreement on Tuesday to buy FTX’s non-U.S. unit to help tide over a liquidity crunch at the rival exchange. Volatility in crypto and crypto-related stocks had ensued earlier when Changpeng Zhao, the founder and CEO of Binance announced his trading platform is about to liquidate its entire FTT FTT/USD holdings.

Wood’s funds also bought over 420,000 shares of cryptocurrency exchange platform Coinbase Global Inc. COIN-5.45% at an estimated valuation of over $21 million. The purchase was done via three of the company’s ETF.

Undeterred by the collapse of the world’s 3rd largest crypto exchange, FTX, Cathie Wood purchases additional shares of Coinbase

Coinbase is the 11th largest holding of ARK’s flagship fund – the ARK Innovation ETF. The company started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin. Today, it offers a trusted and easy-to-use platform for accessing the broader cryptoeconomy.

Coinbase recently added Primer to its payments platform, which works with merchants operating across multiple industries through the UK, Europe , US and APAC, to satisfy a growing appetite for crypto as a payment method.

ARKK with a weight of over 3.94%. Shares of Coinbase closed over 10% lower on Tuesday and shed 1.22% in extended trading after investors were worried about the financials of cryptocurrency exchange FTX.

Coinbase later wrote a blog to calm investors saying it does not have a liquidity problem and that it largely holds its assets in dollars. “We ended Q3 with $5.6 billion in total available $USD resources, including $5B in cash and cash equivalents,” it said.


This article was originally published on Benzinga and appears here with permission.

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