Ark Invest offloads $34 million in Coinbase while shares jump 7% pre-market ahead of earnings report

By Press Last updated Feb 15, 2024

Ark Invest, led by Cathie Wood, divested over 200,000 units of Coinbase (COIN) shares, marking its first significant sale in over a month, per the firm’s latest trading file obtained by CryptoSlate.

The transaction included the sale of 152,600 Coinbase shares from the ARK Innovation ETF (ARKK). The firm also sold 31,459 COIN shares from its ARK Fintech Innovation ETF (ARKF) and 30,009 from the ARK Next Generation Internet ETF (ARKW). Cumulatively, these sales amounted to $34 million, based on the closing price of the exchange stock on Feb. 14.

Meanwhile, this move comes amidst a surge in Coinbase’s stock value amid the ongoing crypto market rally and a JP Morgan analyst upgrade to ‘neutral.’ COIN is up around 7% in after-hours and pre-market trading since the markets closed on Feb. 14.

Tradingview data show that COIN stocks have increased by nearly 17% over the past month to more than $160 for the first time since the US Securities and Exchange Commission (SEC) greenlit several Bitcoin exchange-traded fund (ETF) products. Coinbase is the crypto asset custodian for many of these ETFs, including BlackRock’s IBIT.

Coinbase earnings report

Coinbase will release its fourth-quarter earnings today, Feb. 15. Market observers have predicted robust growth for the crypto-trading giant, with consensus pointing towards a substantial revenue surge.

Data from MarketWatch suggest a 22% increase in revenue to $825 million, up from $674 million in the third quarter. This optimism stems from the exchange’s solid trading volumes, with analysts projecting that the firm would have facilitated more trades than it did during the third quarter.

In the fourth quarter, the crypto market witnessed a bullish trend as BTC and several large-cap digital assets were buoyed by the growing confidence in an ETF approval.

Recent statements by Brian Armstrong, CEO of Coinbase, affirmed the platform’s vigorous trading activities. Armstrong disclosed that the exchange’s international division, specializing in perpetual, futures, and spot trading, has consistently surpassed its previous daily trading records.

However, it’s worth noting that JPMorgan analysts previously predicted a decline in Coinbase’s share price this year. Additionally, regulatory challenges loom over the firm, with ongoing litigation from the SEC alleging unregistered securities exchange operations—a charge vehemently contested by Coinbase.