Cathie Wood’s ARK resumes Coinbase buying as BTC drops below $50K

Cathie Wood's investment firm ARK Invest is back to buying the Coinbase (COIN) stock amid a major market sell-off, with Bitcoin (BTC) briefly dropping below $50,000.

On Aug. 5, ARK purchased 28,632 Coinbase shares, resuming buying after a long period of dumping the stock in 2024.

The purchase cost $5.4 million, with COIN closing at $189.5 on Aug. 6, according to data from TradingView.

ARK bags Coinbase shares as Bitcoin tumbles 20%

ARK’s return to buying Coinbase came amid a significant decline in cryptocurrency markets, triggered by massive volatility across traditional equity markets.

On Aug. 5, Bitcoin plummeted below $50,000 for the first time since February 2024, briefly dropping to as low as $49,800, according to data from CoinGecko. The price drop erased much of Bitcoin’s gains over the past few months, as BTC tumbled more than 20% from around $63,000 on Aug. 1 before recovering at around $55,000.

At the time of writing, Bitcoin is trading at $55,661, up around 6% over the past 24 hours, but still down 16% over the past seven days, according to CoinGecko.

As previously mentioned, the Coinbase stock  the Bitcoin price, with COIN reflecting the state of the cryptocurrency market. Over the past 12 months, Bitcoin added around 93% to its value, while Coinbase surged more than 110%, according to TradingView data.

In line with Bitcoin’s plunge, Coinbase shares tumbled 20.7% on Aug. 5, dropping to as low as $173 per stock. Following a subsequent recovery, the Coinbase stock closed at $189.5 on Monday, down around 7%, TradingView data showed.