Cryptoupdated 1h ago2 min read
Cathie Wood-Led Ark Invest Buys Coinbase And Circle, Trims Bullish
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ARK Invest bought Coinbase and Circle shares across two sessions. Sold Bullish stake, reducing exposure amid crypto stock declines.
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ARK trims Bullish, adds COIN
Cathie Wood-led Ark Invest bought Coinbase Global Inc.(NASDAQ:COIN) shares and Circle Internet Group Inc.(NYSE:CRCL) shares while trimming its stake in Bullish (NYSE:BLSH), as crypto-linked stocks traded lower. Ark bought 3,041 Coinbase shares through ARK Blockchain & Fintech Innovation ETF (BATS:ARKF), 17,077 shares through ARK Innovation ETF (BATS:ARKK) and 4,672 shares through ARK Next Generation Technology ETF (BATS:ARKW), for a combined purchase totaling 24,790 shares. Ark also bought 6,738 Circle shares through ARKF, 22,707 shares through ARKK and 6,212 shares through ARKW, for a combined purchase totaling 35,657 shares.
Ark added 7,703 Robinhood shares through ARKF, and Ark sold 28,798 Bullish shares through ARKF, 50,196 shares through ARKK and 25,178 shares through ARKW, for a combined sale totaling 104,172 shares. Morgan Stanley analyst Michael Cyprys downgraded Coinbase to Underweight from Equal-Weight and cut his price target to $120 from $258, citing weaker trading activity, a softer revenue outlook and uncertainty following the Binance hack.
Trades priced at Monday close
Coinbase fell 3.98% to $137.83, Circle slipped 0.63% to $72.08 and Bullish dropped 5.7% to $22.54 on Monday, while the Robinhood stock fell 1.4% to $83.80. Cathie Wood bought 24,790 Coinbase shares and 35,657 Circle shares across three ETFs, and she also added 7,703 Robinhood shares to ARKF while selling 104,172 Bullish shares. Circle is due to report third-quarter results on Wednesday, and analysts expected revenue of about $789 million and earnings of $0.42 per share.
Ark bought 24,790 Coinbase shares for approximately $3.4 million based on Monday’s closing price of $137.83, and Ark bought 35,657 Circle shares for approximately $2.6 million based on Monday’s closing price of $72.08. Circle is due to report third-quarter results on Wednesday, with analysts expecting revenue of about $789 million and earnings of $0.42 per share.
Stablecoin rules and earnings
The Office of the Comptroller of the Currency issued a final rule covering payment stablecoin issuance and related activities by entities under its jurisdiction in October. Circle issues the major stablecoin USDC (CRYPTO: USDC), and Ark bought 7,703 Robinhood shares through ARKF for a trade worth approximately $645,819 based on Monday’s closing price of $83.84. The company earns most of its money from interest on the reserves backing USDC, and lower interest rates reduce that income and more USDC in circulation increases it.
Coinbase and Circle are linked, with Coinbase receiving about half of the revenue from USDC under its agreement with Circle, and about 30% of USDC in circulation sits on Coinbase’s platform. Robinhood reported record third-quarter revenue of $1.424 billion, up 12% year over year, and cryptocurrency revenue fell 55% to $120 million while event-contract revenue rose more than sixfold to $173 million.