TLDRARK Invest purchased 41,032 Coinbase (COIN) shares worth $9.3 million through its ARKW ETFThe purchase came as Bitcoin fell to multi-month lows of $88,534 and COIN shares dropped over 20% in a weekARK sold 98,060 shares of its own ARK 21Shares Bitcoin ETF (ARKB) valued at approximately $8.6 millionCoinbase recently beat Q4 earnings expectations with a 138% increase from 2023The SEC has dropped its lawsuit against Coinbase, removing a major regulatory concernARK Invest, led by CEO Cathie Wood, has made a bold move into the cryptocurrency exchange market by purchasing a large block of Coinbase shares even as crypto prices tumbled to multi-month lows. The investment firm acquired 41,032 shares of Coinbase Global Inc. (COIN) valued at approximately $9.3 million through its ARK Next Generation Internet exchange-traded fund (ARKW).This purchase comes at a time when crypto markets are experiencing heightened volatility. Bitcoin was trading at $88,534, down 3.5% on the day and hitting levels not seen since November 2023. The overall cryptocurrency market capitalization also decreased by 3.2% to $3.04 trillion during the same period.Here's what moves Cathie Wood and Ark Invest made in the stock market today 2/25 pic.twitter.com/phhbmsDwHS— Ark Invest Daily (@ArkkDaily) February 26, 2025Coinbase shares have faced pressure recently, closing at $212.49 on February 25, which represents a 6.42% drop for the day and more than 20% decrease over the past week. BofA Securities further added to market concerns by reducing its price target for COIN from $363 to $311, citing increasing competition from traditional financial firms entering the cryptocurrency space.The current market downturn appears to be linked to recent economic announcements. Donald Trump confirmed new tariffs on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. These announcements triggered investor concerns about rising costs potentially fueling inflation and creating economic uncertainty. The reaction was swift, with over $1 billion in crypto liquidations occurring in a 24-hour period.The Strategy Behind ARK’s Crypto PositioningDespite these challenges, ARK Invest’s decision to increase its Coinbase holdings may reflect confidence in the exchange’s fundamentals. Coinbase recently reported stronger-than-expected fourth-quarter earnings for 2024, showing a 138% increase compared to 2023 and exceeding the $1.88 billion estimate provided by LSEG analysts.Another positive development for Coinbase has been the U.S. Securities and Exchange Commission’s decision to drop its lawsuit against the company. This lawsuit had been one of the commission’s largest crypto-related enforcement actions under former chair Gary Gensler, and its dismissal removes a major regulatory concern that had been hanging over the company.In what appears to be a rebalancing of its crypto exposure, ARK simultaneously sold 98,060 shares of its own ARK 21Shares Bitcoin ETF (ARKB) from its ARKW fund. This sale was valued at approximately $8.6 million based on the ETF’s closing price of $87.86 on Tuesday.The Coinbase purchase marks a reversal from ARK’s December position, when the firm sold $4.3 million worth of COIN stocks. This change in strategy suggests ARK may view the current price drop as a buying opportunity rather than a reason for concern.The ARK Next Generation Internet ETF that made the Coinbase purchase focuses on long-term capital growth by investing in companies connected to next-generation Internet technologies. This particular ETF is actively managed, allowing the team to make tactical decisions based on market conditions and future outlook.ARK’s trading activity wasn’t limited to the crypto sector. The company also made large investments in Tempus AI Inc (NYSE:TEM), buying a total of 445,958 shares across its ARKK and ARKG ETFs, which amounted to over $31 million. This represented the largest aggregate purchase for the day.On the sell side, ARK divested 107,159 shares of Roku Inc (NASDAQ:ROKU) through its ARKK ETF, amounting to nearly $9.8 million. This continues ARK’s trend of reducing its position in the streaming device company.In the biotech space, ARK sold 850,919 shares of Accolade Inc (NASDAQ:ACCD) for roughly $5.9 million through its ARKG ETF and 120,149 shares of DraftKings Inc (NASDAQ:DKNG) across its ARKK and ARKF ETFs, totaling approximately $5.3 million. The firm also sold 430,483 shares of SoFi Technologies Inc (NASDAQ:SOFI) through its ARKK ETF, valued at about $6.2 million.While reducing positions in some companies, ARK showed increased interest in ABSCI Corp (NASDAQ:ABSI), buying 97,505 shares worth around $436,334, and in Recursion Pharmaceuticals Inc (NASDAQ:RXRX), acquiring 103,430 shares with a total value of $930,870, both through its ARKG ETF.The ARKK ETF also added 39,418 shares of Iridium Communications Inc (NASDAQ:IRDM) valued at approximately $1.2 million, continuing a buying trend from the previous day when ARK purchased 108,803 shares of the same company.ARK’s recent trading activities show the firm’s willingness to go against market sentiment when it sees potential value, particularly in the cryptocurrency sector with its substantial Coinbase purchase during a major market downturn.The post ARK Invest Purchases $9.3 Million in Coinbase Shares Amid Crypto Downturn appeared first on Blockonomi.