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ARK Invest's Strategic Shift: Swapping Coinbase for Tesla

Discover ARK Invest's latest strategic moves: selling $25 million in Coinbase shares and buying Tesla stock. Stay updated with ARK's dynamic portfolio adjustments and their continued interest in Coinbase.

ARK's Big Move: Coinbase Out, Tesla In

Cathie Wood's ARK Invest has made a significant portfolio adjustment, divesting $25 million worth of Coinbase (COIN) shares and redirecting funds towards Tesla (TSLA). On January 3, ARK sold off over 166,000 Coinbase shares as the stock saw a 3% dip, closing at $152.24. This sale is part of a broader pattern, with ARK having offloaded more than $125 million in Coinbase shares since December 2023.

Tesla Takes the Stage: ARK's New Bet

Post-Coinbase sell-off, ARK Invest didn't sit idle. Instead, it reinvested nearly the same amount into electric vehicle giant Tesla. ARK Innovation ETF (ARKK) snapped up 91,194 Tesla shares, while ARK Next Generation Internet ETF (ARKW) added 14,007 TSLA shares to its portfolio. This move aligns with ARK's tendency to pivot towards innovative and disruptive companies.

Coinbase Still a Key Player in ARK's Strategy

Despite this sell-off, Coinbase remains a heavyweight in ARK's investment strategy. The crypto exchange is the largest asset in the ARKF ETF portfolio, with a whopping value of over $145 million as of January 4. This indicates that while ARK is diversifying, it still sees value in holding a significant stake in Coinbase.

A December to Remember: ARK's Aggressive Coinbase Sell-Off

ARK's recent trades are part of a larger pattern observed in December when the firm sold 237,572 Coinbase shares from its three funds. This major sell-off occurred on December 5, the same day Coinbase stock hit $140 per share, netting ARK at least $33 million. The ARK Innovation ETF saw the most significant reduction, with additional sales from ARK Fintech Innovation ETF and ARK Next Generation Internet ETF.

Beyond Coinbase: ARK's Broader Investment Moves

In a notable shift, ARK Invest also liquidated its entire Grayscale Bitcoin Trust (GBTC) holdings, valued at $200 million, on December 28. Following this, ARK allocated about $100 million from the GBTC sale into the Bitcoin Futures ETF Bito, indicating a strategic repositioning in the cryptocurrency investment space.