Coinbase, like most other crypto-linked stocks, has seen its values plummet on the back of the recent crypto market crash.
Ark Invest, the third-biggest shareholder in Coinbase, has sold off over 1.41 million of its shares.
The sudden sales of the shares, with a monetary value of almost $75 million based on Coinbase trading value of $52.93 as of Tuesday’s closing hours, were announced in the firm’s daily trade information newsletter.
Details from the newsletter indicated that the sale was spread out across three different exchange-traded funds managed by the firm.
These funds included the likes of Ark Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF).
A breakdown of the number of shares sold from each of these funds showed that AARK recorded the highest figure of 1,133,495 COIN shares, a figure that represents 0.6833% of its fund’s total investments. The other funds ARKW and ARKF sold 174,611 and 110,218 shares respectively.
Before the sudden sale, Ark Invest is prominent for its consistent purchase of Coinbase stock since it debuted on Nasdaq last year. Just two months ago, the company purchased over 500,000 shares worth $30 million.
The company’s flagship ETF project with ARKK recorded tremendous success, especially after the hefty gains recorded in the stock market amid the pandemic in 2020.
However, since the start of the year, amid a market meltdown that sent shock waves across the industry, it plunged by 57.84%.
The recent action of Ark Invest represents a significant development amid concerns in the industry that there would be an increase in moves to tighten monetary policies across the globe.
Coinbase Shares Down
Coinbase, like most other crypto-linked stocks, has seen its values plummet on the back of the recent crypto market crash.
Others like Block, MicroStrategy, and others lost a substantial part of their values during the peak of the bear market.
SEC vs Coinbase
Ark sales are also coming in the aftermath of a recent announcement that the US Securities and Exchange Commission (SEC) was investigating Coinbase.
The investigation into the San Francisco-based company is related to allegations that it allows Americans to trade in tokens that should have perhaps been registered as securities.
Coinbase, however, has denied any wrongdoing. The firm, through its chief legal officer, Paul Grewal, stated that it would be happy to chat with the SEC on the matter.
The exchange also vehemently denied listing securities. According to the firm, its listing process has been reviewed by the financial regulator itself.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
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