TheBlock
Ark Invest bought $3.4 million of Coinbase shares, $2.6 million of Circle shares and $645,820 of Robinhood shares on Monday, even as all three stocks closed lower. The Cathie Wood-led firm purchased 24,790 Coinbase shares, 35,657 Circle shares and 7,703 Robinhood shares through its ETFs. It also sold 104,172 Bullish shares worth $2.3 million as Bullish fell 5.69% to $22.54.
Why it matters
The trades came days after Coinbase reported third-quarter net income of $719 million, up 66% year over year, while revenue was $1.22 billion, broadly flat from the prior quarter but down 35% year over year. Its prediction-markets business surpassed $200 million in annualized revenue, double the roughly $100 million reported for the previous quarter. Bernstein analysts said growth in prediction markets and subscription and services revenue helped offset softer crypto trading activity.
Ark’s purchases therefore span firms with different revenue drivers, while the Bullish sale shows the activity was not a blanket addition to crypto-linked equities. Robinhood reported crypto revenue of $120 million, up 20% from the previous quarter, offsetting a decline in crypto trading revenue.
Market impact
The disclosures show Ark adding to Coinbase, Circle and Robinhood after their shares fell, but do not establish a broader market turn. Coinbase closed down 3.98% at $137.83, while Circle lost 0.6%. Circle is scheduled to report third-quarter earnings on Nov. 4, with consensus estimates of $788.17 million in revenue and $0.37 in earnings per share. Bullish is expected to report on Nov. 18.
Frequently asked questions
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How much Coinbase stock did Ark Invest buy?
Ark bought 24,790 Coinbase shares worth $3.4 million through its ARKK, ARKW and ARKF ETFs.
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Which crypto-linked stock did Ark sell?
Ark sold 104,172 Bullish shares worth $2.3 million. Bullish shares fell 5.69% to close at $22.54.
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What drove Coinbase's earnings growth beyond trading?
Coinbase's prediction-markets business exceeded $200 million in annualized revenue, while subscription and services revenue also helped offset softer crypto trading activity.
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How did Robinhood's crypto revenue change?
Robinhood reported $120 million in crypto revenue, a 20% increase from the previous quarter, offsetting a decline in crypto trading revenue.
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When are Circle and Bullish expected to report earnings?
Circle is scheduled to report third-quarter earnings on Nov. 4, and Bullish is expected to report on Nov. 18.
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