Cathie Wood’s Ark Investment Management has doubled down on its investment in Coinbase Global (COIN) after the U.S. Securities and Exchange Commission (SEC) sued the only publicly traded crypto exchange, sending share prices tumbling. ARK purchased 419,324 shares of Coinbase, worth around $21.6 million based on Tuesday’s closing price of $51.61. The buy was split across ARK’s Innovation ETF (NYSE:ARKK), the Next Generation Internet ETF (NYSE:ARKW), and the Fintech Innovation ETF (NYSE:ARKF). This purchase, the first since May 3, took Ark’s total Coinbase holdings to 11.44 million shares, valuing the position at around $590 million.
The SEC’s lawsuit against Coinbase alleged that the crypto exchange violated federal securities law by acting as a broker, exchange, and clearing agency simultaneously without registering as any such organization. Coinbase’s stock was down over 12% at the end of U.S. trading hours on Tuesday, though it is still up over 50% year-to-date.
Despite the SEC’s lawsuit, Cathie Wood’s Ark Investment Management has shown its confidence in Coinbase by doubling down on its investment.