TL;DR
- Ark Invest bought 54,776 Coinbase shares worth $8 million, distributed across three of its ETFs, following the post-earnings market decline.
- The firm led by Cathie Wood also acquired 23,070 Circle shares for $1.4 million: CRCL has accumulated a 25% loss year-to-date.
- Ark shed 5,700 shares of Solmate, whose price collapsed 99% from its September peak despite the firm’s initial backing.
Ark Invest took advantage of Coinbase’s post-earnings drop to increase its positions in the exchange, buying 54,776 shares valued at approximately $8 million on Monday, August 4.
The purchase was distributed across three of its exchange-traded funds: 38,761 shares for the Ark Innovation ETF (ARKK), 11,133 for the Ark Next Generation Internet ETF (ARKW) and 4,882 for the Ark Fintech Innovation ETF (ARKF). The transaction was executed after Coinbase shares fell more than 14% following the release of its second-quarter results.
The investment strategy of Ark Invest, the firm led by Cathie Wood, establishes that no individual position may exceed 10% of a fund’s portfolio, which requires constant rebalancing based on the relative performance of each asset. According to the company’s public records, COIN is currently the sixth-largest holding within ARKK, with a weighting of 4.2% and a value of approximately $238 million as of August 4, behind Tesla, SpaceX, Tempus AI, CRISPR Therapeutics and Shopify.
Ark Invest Keeps Betting on Circle
On the same day, Ark Invest acquired 23,070 additional shares of Circle for approximately $1.4 million, split between its ARKK and ARKW funds. The issuer of the USDC stablecoin closed the session with a 3.6% decline to $60.35, accumulating a 25% loss so far this year.
Circle is the ninth-largest holding in ARKK, valued at $210.5 million, and the twelfth in ARKW, with $56.1 million. Last week, Circle obtained a limited purpose trust license granted by the New York Department of Financial Services for its subsidiary Circle Internet Trust Company.
On the other hand, Ark Invest shed 5,700 shares of Solmate Infrastructure, linked to Brera Holdings, for a value of approximately $25,000, distributed across its three main ETFs. The firm had backed this Solana-focused company through a private placement of $300 million last year, together with the Solana Foundation.
However, Solmate shares have recorded a 99% decline from their September peak, as part of the widespread collapse of the Digital Asset Treasuries market that once generated enormous enthusiasm among investors.
