ARK Invest, led by Cathie Wood, is reallocating its financial assets by steadily reducing its position in Coinbase while increasing investments in Advanced Micro Devices (AMD).
Reduction in Coinbase Holdings
ARK Invest sold $43.8 million worth of shares in Coinbase on Monday. This sale follows a total of 270,984 shares sold over the past three trading sessions.
The total sale amounts to about $95 million based on COIN's closing price of $350.49 on Monday. This strategy aligns with ARK's internal policy to keep any single holding below 10% of an ETF's total value. Currently, Coinbase holds the second-largest position in its portfolio at 8.84%.
Investment in AMD
Meanwhile, ARK Invest has made a move towards semiconductors, investing in AMD shares. On Monday, the firm acquired 356,275 shares of AMD worth approximately $50.5 million through its ETFs, including ARKK, ARKW, and ARKF.
This investment comes at a time when AMD closed at $141.90. Despite some volatility related to competition in the AI sector, ARK seems confident in the company's future.
Situation for Coinbase and Other ARK Actions
Analysts recently projected a price target of $510 for Coinbase, while ARK Invest plays it safe by locking in profits as COIN continues its impressive run of 42% growth over the past month. Following ARK's sale, COIN is seeing a pre-market decline of 2.4%.
Additionally, ARK has also cut its position in Israeli defense firm Elbit Systems, selling 1,160 shares through its ARKX and ARKQ ETFs and netting approximately $504,000.
ARK Invest's financial strategies highlight the company's ongoing activity in the stock markets, reflecting their investment decisions based on performance trends and investor interest.
