Cathie Wood Slashes Silvergate Stake As Shares Plunge 43% — Loads Up $5.7M In Another Bitcoin-Linked Stock By Benzinga

Benzinga – Cathie Wood-led ARK Investment Management bought 172,276 shares of cryptocurrency exchange platform Coinbase (NASDAQ:) Global Inc (NASDAQ: COIN) at an estimated valuation of over $5.7 million based on Thursday’s closing price.

The purchase was done via the ARK Fintech Innovation ETF (NYSE: ARKF), in which Coinbase is the third largest holding, and the ARK Next Generation Internet ETF (NYSE: ARKW) that has the company as its eighth largest holding.

Also Read: Best FTX Alternatives: How To Keep Your Crypto Safe

Coinbase shares closed over 11% down on Thursday after analysts warned of declining trading volumes and elevated scrutiny in the wake of the FTX collapse.

Cowen & Co downgraded Coinbase from ‘Outperform’ to ‘Market Perform’ and reduced the price target from $75 to $36, citing uncertainty surrounding trading volumes and increased potential for SEC enforcement. Cowen noted that Coinbase generates a majority of its revenue from transaction fees, which means its business is highly correlated to crypto prices, trading volumes, and volatility.

Interestingly, crypto prices have been on the rise over the last week. (CRYPTO: BTC) has recorded 1.42% returns in the last five days while (CRYPTO: ETH) has gained 4.53%.