ARK Investment Management purchased 237,675 shares in crypto exchange Coinbase (COIN) as the stock retreated amid fallout from the near-collapse of rival FTX.
ARK, led by Cathie Wood, purchased over 400,000 shares in Coinbase earlier this week.
The majority of the recent purchases were bought in ARK’s Innovation ETF, with additional shares in its Next Generation Internet ETF and the Fintech Innovation ETF, according to company disclosures.
Coinbase said this week it has minimal exposure to FTX, with just $15 million on deposit there to facilitate business operations and customer trades. Further, Coinbase said it has no exposure to FTX’s token FTT – which plunged about 80% Tuesday – and no exposure to FTXs’ sister company, Alameda Research.
“While COIN has minimal exposure to FTX, before there is enough evidence that the contagion risk is contained, the pressure on crypto prices will likely weigh on COIN,” Oppenheimer analyst Owen Lau told clients in a research note Thursday morning. The firm lowered its price target to $89 from $107, maintaining an outperform stock rating.
Coinbase shares slumped about 22% this week through Wednesday. They rose 12% to $51.50 in early trading Thursday.
Read more: Coinbase Says No Exposure to FTT Token and Alameda, Minor Deposits at FTX