Coinspeaker
Coinbase Stock Down 5% in Pre-Market, Cathie Wood’s ARK Invest Sold $49.2M Worth of COIN Shares on Friday
Coinbase stock is facing a pre-market dip of almost 5% on the morning of December 11, 2023. As per current market charts, Coinbase is trading at $141.79 per share, down from the $146.62 it traded at when the markets last closed. On one hand, this comes as a bit of a surprise considering the current market uptick in the cryptocurrency sector.
Several major cryptos have been reporting market gains, which usually trickle down to the exchanges that sell them. On the other hand, Cathie Wood’s ARK investment recently made some market moves that could have triggered this.
ARK Selling Off Coinbase Stock
It was reported just last Friday that the investment firm sold 335,860 Coinbase shares across three ETFs. Given the exchange’s closing price of $146.62, this would mean that the sale had a value of $49.2 million. And this is just the latest in a series of sales undertaken by ARK with regard to Coinbase Global Inc (NASDAQ: COIN) stock.
The firm has been consistently selling off Coinbase stock for a few weeks now, though its biggest sale this year was back in July when it sold 480,000 Coinbase shares. This recent stock dump could also, ironically, be put down to the recent price rally of Coinbase stock.
While its pre-market position shows a decline, Coinbase did end last Friday on a high note of a 7.66% increase. Ark Invest, as a rule, aims to have each asset comprise not more than 10% of the value of any fund. As Coinbase’s stock has been soaring, it very well could have exceeded this limit, causing the firm to offload.
Once the markets open, it will be more apparent if the effects of ARK’s selloff will be long-term or just a bump in the road.
Coinbase certainly seems to be ending the year on a high note, development-wise. The exchange rolled out a new feature about a week ago that lets users instantly generate a shareable payment link. With this, transfers even across borders will be more seamless for Coinbase users. On top of this, Coinbase has also rolled out fiat transactions to a total of 130 countries, further expanding its global reach. While cryptocurrency has been its bread and butter for years, Coinbase is also trying to corner the fiat market and better serve customers.
It’s also an interesting way for Coinbase to round off 2023 considering the fact that it began the year being sued by the SEC in the United States for allegedly selling unregistered securities. Coupled with the crypto winter that was raging at the time, the situation for Coinbase seemed rather dire at the time. Now, the year seems to be closing off on a better note.
