Cathie Wood’s Ark Invest has increased its positions in Coinbase, Circle, Bullish, and Robinhood after all four stocks posted losses in Thursday’s trading session. Summary Ark Invest bought m
Cathie Wood’s Ark Invest has increased its positions in Coinbase, Circle, Bullish, and Robinhood after all four stocks posted losses in Thursday’s trading session.
Summary
- Ark Invest bought more Coinbase, Circle, Bullish, and Robinhood shares after all four stocks closed lower on Thursday.
- Recent purchases continued Ark’s strategy of adding to crypto related stocks during periods of market weakness.
- Cathie Wood said falling unit labour costs and stronger productivity could push inflation lower than many investors expect.
Ark Invest’s latest daily trading disclosure showed the firm bought 9,014 Coinbase shares across its ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). Based on Coinbase’s Thursday closing price of $142.52, the purchase was worth about $1.28 million.
The investment firm also acquired 9,264 Circle shares valued at approximately $637,455 and 9,136 Bullish shares worth about $199,895. Through ARKK, Ark added another 35,023 Robinhood shares with a market value of roughly $3.27 million.
Coinbase ended Thursday down 5.06%, Circle lost 3.06%, Robinhood fell 3.83%, and Bullish declined 6.77%. Ark increased its exposure as each stock traded lower.
Ark manages its exchange-traded funds with a policy that limits any single holding to no more than 10% of a portfolio. The firm periodically adjusts positions to maintain those weightings when share prices change.
Ark continues buying on weakness
The latest purchases extend a pattern of buying stocks after sharp pullbacks.
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Last week, Ark bought about $18.4 million worth of Coinbase shares after the crypto exchange’s stock had fallen nearly 13% over the previous month. The same portfolio update included the sale of almost $29 million in Robinhood shares while the brokerage traded near multi-month highs.
Earlier in May, Ark also accumulated more than $4.4 million worth of Bullish shares over two trading sessions after the exchange operator’s stock declined for five consecutive sessions. Bullish had previously reported a first-quarter net loss of $604.9 million while adjusted revenue rose to $92.8 million.
Ark followed the same approach earlier this week when it purchased about $32.5 million worth of SpaceX shares after the stock dropped more than 16% from its post-listing peak. That investment came after the firm had already acquired roughly $444.3 million worth of SpaceX shares on the company’s Nasdaq debut on June 12.
Cathie Wood expects inflation to ease
In a thread posted on X, Ark Invest Chief Executive Officer and Co-founder Cathie Wood said investors she met during a roadshow across Asia and Europe remained concerned about inflation, although she argued price pressures could fall much faster than expected.
Wood said unit labour costs had already slowed to 0.5% year over year and identified productivity gains as an important factor behind lower inflation.
She also wrote that former Federal Reserve Governor Kevin Warsh understands the role productivity plays in reducing inflation and criticised government inflation measurements.
“While others are projecting higher rates sooner than was the case a few months ago, I believe that Warsh will give the financial markets a master class in monetary policy.”
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