Cathie Wood Buys COIN Stock After Post-Earnings Slide, Adds CRCL Shares Before Its Results

The trades come ahead of the U.S. midterm elections, which could influence the outlook for crypto legislation, including the CLARITY Act.

• ARK Invest bought 24,790 Coinbase shares and 35,657 Circle shares across three ETFs.
• Cathie Wood also added 7,703 Robinhood shares to ARKF while selling 104,172 Bullish shares.
• Circle is due to report third-quarter results on Wednesday, with analysts expecting revenue of about $789 million and earnings of $0.42 per share.

Cathie Wood’s ARK Invest bought shares of Coinbase Global (COIN) and USDC stablecoin issuer Circle (CRCL) on Monday, while trimming its stake in cryptocurrency exchange Bullish (BLSH). 

Wood bought 24,790 Coinbase shares across three of its exchange-traded funds, which include the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF). Based on Monday’s closing price, the purchase was worth around $3.4 million.

She bought 35,657 Circle shares across the same three funds, worth about $2.6 million. Wood also picked up 7,703 shares of Robinhood Markets (HOOD) in ARKF. On the other side of her crypto trades, Wood sold 104,172 shares of Bullish across the same three funds, worth about $2.3 million. 

Cathie Wood Buys The Dip In Coinbase Stock

Coinbase reported its third quarter (Q3) last week. Revenue was about $1.2 billion, meeting Wall Street’s forecast, but flat from the second quarter (Q2) and down 28% from a year earlier, as per Koyfin data. Earnings per share (EPS) also met expectations of a $0.09 loss. 

However, Wall Street saw low-quality profitability and weak underlying operating momentum. With revenue flat and profit largely driven by unrealized crypto gains rather than trading or recurring revenue, many trimmed their price targets for Coinbase even as they acknowledged that the firm had managed to diversify its revenue streams.

COIN stock has fallen about 14% since the crypto exchange reported third-quarter (Q3) results last week. In pre-market trade, the shares traded flat. Retail sentiment on Stocktwits around the company trended in ‘bullish’ territory over the past day, accompanied by chatter at ‘high’ levels.

ARK Adds Circle Shares Ahead Of Earnings

Circle is scheduled to report third-quarter (Q3) results on Wednesday. Analysts expect revenue of about $789 million and earnings of $0.42 a share, per Koyfin. 

The company earns most of its money from interest on the reserves backing USDC. Lower interest rates reduce that income, and more USDC in circulation increases it.

Coinbase and Circle are linked, with Coinbase receiving about half of the revenue from USDC under its agreement with Circle, and about 30% of USDC in circulation sits on Coinbase’s platform.

CRCL stock also traded flat in pre-market trade. Retail sentiment on Stocktwits around the shares trended in ‘bearish’ territory over the past day. 

The trades come ahead of Election Day. Congress has been working on rules for crypto markets, including the CLARITY Act, which would set out how digital assets are regulated. The midterm election results will decide which party controls Congress.

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