ARK Invest has made a noteworthy shift in its investment strategy by reinvesting approximately $15 million in Coinbase Global shares after initially reducing its holdings earlier this month. This latest move involved purchases spread across three of ARK’s actively managed exchange-traded funds (ETFs), specifically the ARK Innovation ETF (ARKK), the Next Generation Internet ETF (ARKW), and the Fintech Innovation ETF (ARKF). Collectively, these purchases comprise 66,545 shares from ARKK, 16,832 shares from ARKW, and 9,477 shares from ARKF, amounting to a total expenditure of around $15.2 million based on Coinbase’s closing price of $164.32.
This reinvestment coincided with a significant rally in Coinbase stock, which surged by 16.4% during the trading session, and continued to rise in after-hours trading. This upward momentum followed a period of weakened performance that had affected several ARK funds.
The recent buying activity is particularly intriguing, as it comes shortly after ARK reduced its stake in Coinbase earlier this month. On February 5, the firm sold approximately $17.4 million worth of shares, marking its first reduction of the year and the first cut since August 2025. The following day, ARK proceeded with an additional sale of around $22 million in Coinbase shares across its various ETFs. Interestingly, while divesting from Coinbase, ARK simultaneously increased its investment in digital asset platform Bullish, suggesting a strategic rebalancing of its crypto-linked positions rather than an overall withdrawal from the cryptocurrency sector.
Coinbase had negatively impacted ARK’s performance in the fourth quarter of 2025, with the stock experiencing a sharper decline compared to both Bitcoin and Ether during that time, which contributed to the lackluster returns of some of Cathie Wood’s flagship investment funds.
The recent volatility surrounding Coinbase has been fueled by its fourth-quarter report, which indicated a net loss of $667 million, marking the end of an eight-quarter streak of profitability. The company’s earnings per share fell to 66 cents, significantly below analyst expectations, which pegged the figure at 92 cents. Net revenue also saw a year-over-year decline of 21.5%, dropping to $1.78 billion, largely attributed to a 37% dip in transaction revenue as cryptocurrency trading activity waned. However, there was a silver lining, with subscription and services revenue increasing by over 13%, reaching $727.4 million.
As the company navigates this challenging environment, it reported generating $420 million in transaction revenue in the early days of the first quarter but anticipates a decline in subscription and services revenue. This mixed outlook has rendered the stock particularly sensitive to larger market movements and changes in investor sentiment.
For ARK, the recent trading pattern illustrates active management rather than a fixed investment strategy. By selling off shares during periods of poor performance and reacquiring them during market rebounds, ARK seems to be dynamically adjusting its investment exposure in line with market shifts. The simultaneous acquisition of additional shares in companies like Roblox across the same ETFs indicates that ARK is executing a broader portfolio rebalance that encompasses growth and technology sectors, not merely cycling within the cryptocurrency space.
Investors monitoring ARK’s strategic approach may find themselves contemplating whether the recent volatility in Coinbase’s stock can stabilize amidst mixed earnings signals and fluctuating crypto market conditions. Should digital asset prices experience a resurgence, Coinbase stands to benefit from increased trading volumes. Conversely, any resurgence of volatility could trigger further tactical maneuvers from active managers looking to navigate the ever-evolving market landscape.
