Cathie Wood, Founder and CEO of ARK Invest, is backing out of Coinbase after building up a substantial position in the cryptocurrency exchange since its IPO. More than 1 million shares of the stock were sold by ARK Invest this past week as news broke that Coinbase is the subject of a Securities and Exchange Commission (SEC) inquiry into whether it improperly permitted Americans to trade digital assets that ought to have been registered as securities. Shares of COIN decreased by more than 20% as of market close on Tuesday. The sale suggests Wood has lost faith in Coinbase as the largest cryptocurrency exchange in the United States struggles with a continuing stock price decline. Rubbing salt into the wound for Wood is ARK’s recent increase in its stake in e-commerce giant Shopify (SHOP), whose shares have also recently plummeted 14% after it announced it was firing 10% of its global workforce.
Cathie Wood’s ARK Invest Dumps 1.4 Million Coinbase Shares Amid SEC Probe