Investment management firm Cathie Wood has returned to buying shares of Coinbase, just a day after COIN’s share price fell on news of Wells’ news.
On March 23, ARK Invest bought 268,928 shares of Coinbase through ARKK Innovation and ARKW Next Generation Internet exchange-traded funds. The stock is worth $17.88 million at the time of writing.
Just two days earlier, and before the Wells news broke, ARK Invest sold 160,887 shares of Coinbase from the ARK Fintech Innovation ETF. The sale is the first of the ETF ARK Invest to sell shares of Coinbase in 2023.
Cathie Wood and Ark Invest from today 23/03/2019 pic.twitter.com/yyubxTegZj
– Ark Invest Daily (@ArkkDaily) March 24, 2023
Coinbase’s stock price has failed to recover as it shares news that it has received Wells’ warning notice of possible enforcement action from the Securities and Exchange Commission, causing COIN’s stock to drop by around 21%.
Shares in Coinbase dipped to as low as $64.27 after trading began on March 23, and at the time of writing they were trading at $66.87 in after-hours trading, according to Barron’s.
related: Coinbase CEO on Wells news: The SEC is like a football referee in a pickleball game
Coinbase CEO Brian Armstrong had also sold shares in the company between March 17 and March 20 – just days before the Wells news and the stock price.
SEC filings show, however, that Coinbase executives and insiders all entered into the 10B5-1 selling plans a month in advance and that the tranche of sales was according to the trading plan adopted on August 16.
While the SEC reached a settlement with crypto exchange Kraken on February 9 after declaring that its staking service qualified as a security, Coinbase has repeatedly insisted that its staking product is very different from Kraken and cannot be universally labeled as a security.
Magazine: The best and worst countries for crypto taxes – Plus crypto tax tips