Cathie Wood's ARK Buys $21.6M Coinbase Shares as SEC Suit Sends COIN Prices Tumbling

Cathie Wood’s Ark Investment Management, the second-largest holder of Coinbase Global (COIN) stock, doubled down connected its concern successful the crypto speech aft the U.S. Securities and Exchange Exchange sued the lone publically traded crypto exchange sending stock prices tumbling.

ARK bought 419,324 shares of Coinbase, worthy astir $21.6 cardinal based connected Tuesday's closing terms of $51.61. The bargain was divided crossed ARK's Innovation ETF (NYSE:ARKK), the Next Generation Internet ETF (NYSE:ARKW), and the Fintech Innovation ETF (NYSE:ARKF).

The purchase, the archetypal since May 3, took Ark’s full Coinbase holdings to 11.44 cardinal shares, valuing the presumption astatine astir $590 million.

The SEC sued Coinbase connected allegations of violating national securities instrumentality conscionable 1 time aft filing a similar suit against Binance. According to the SEC, Coinbase acted arsenic a broker, speech and clearing bureau simultaneously without registering arsenic immoderate specified organization.

Coinbase's stock was down implicit 12% astatine the extremity of U.S. trading hours connected Tuesday. Year-to-date, COIN is inactive up implicit 50%.