Cathie Wood’s ARK Adds Coinbase, Circle and Robinhood, Trims Bullish, After Crypto Stock Slide

Cathie Wood’s ARK Invest purchased approximately $3.4 million worth of Coinbase (NASDAQ: $COIN) shares on Monday, the same day Morgan Stanley (NYSE: $MS) downgraded the cryptocurrency exchange and slashed its price target by more than half, according to the investment firm’s daily trade disclosures.

ARK acquired 24,790 Coinbase shares across three funds: 17,077 through the ARK Innovation ETF, 4,672 through the ARK Next Generation Internet ETF and 3,041 through the ARK Fintech Innovation ETF.

The purchases followed a larger round of buying on Friday. Across Friday and Monday, ARK acquired approximately $9 million in Coinbase shares and $8 million in Circle shares (NYSE: $CRCL), adding a total of 64,208 Coinbase shares as cryptocurrency stocks came under pressure.

Morgan Stanley analyst Michael Cyprys downgraded Coinbase to underweight and lowered his price target to $120 from $258, citing deteriorating confidence in the company’s earnings recovery. Other analysts took a more optimistic view. BTIG’s Andrew Harte suggested Coinbase could benefit from users seeking alternatives following the $6.3 billion Binance hack, pointing to its emphasis on security and custody.

ARK’s buying comes after Coinbase reported third-quarter revenue down approximately 35% year over year, while transaction revenue fell 44% to $590 million.

The firm also made several other crypto-related trades on Monday. ARK purchased 35,657 Circle shares, worth approximately $2.6 million, and 7,703 Robinhood (NASDAQ: $HOOD) shares, valued at roughly $646,000. Meanwhile, it sold 104,172 Bullish (NYSE: $BLSH) shares worth approximately $2.3 million.

Circle shares fell are trading at $72.08, while Bullish stock is sitting at $22.54. Circle is scheduled to report its third-quarter results on Wednesday.