Ark Investment Management CEO Cathie Wood significantly upped her company's stake in Coinbase (COIN) this week.
Ark bought 213,519 shares of Coinbase worth about $13 million on Feb. 22 across her company's funds.
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She added 181,972 shares of Coinbase to the company's flagship ARK Innovation ETF (ARKK) and 31,647 shares to its Next Generation Internet ETF (ARKW), according to Investor's Business Daily.
Wood has been adding to her Coinbase position for several months. The U.S. cryptocurrency exchange's shares have dropped 65% during the past year, as cryptocurrencies in general have suffered, but Coinbase shares have increased 70% this year.
Coinbase is the seventh biggest holding in the ARK Innovation ETF.
Coinbase reported earnings on Feb. 21. Its trading volume tumbled 73% year over year in the fourth quarter as revenue dropped about 75%. It also lost more than $550 million Q4.
In the earnings call, Coinbase CEO Brian Armstrong discussed layoffs at the company.
"In January, we further reduced head count by 20%. This follows the head count reduction of 18% we did last year in June," Armstrong said. "We've also worked hard to reduce the amount of dilution we're taking from stock-based compensation and adjusted our compensation policy across a number of dimensions. Our total dilution since going public in April of 2021 has been about 5%."
Armstrong discussed the FTX collapse and other crypto company failures in 2022, and said he thinks the increased regulatory scrutiny over crypto is a positive development.
"It's really easy to look at the headlines and assume that increased regulatory activity is bad for crypto, but I really don't agree with that," Armstrong said. There's many legitimate companies in the crypto space, like Coinbase, and those of us which prioritize trust and compliance from the beginning, I believe, will be beneficiaries."
"This really goes back to the founding of Coinbase more than 10 years ago. And when I started the company, I really decided that this was going to be a compliance-focused company."
