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It seems crypto exchange Coinbase (NASDAQ:COIN) is Cathie Wood’s latest obsession. Wood has continued to buy COIN stock despite its recent tumble. Indeed, Wood, known for her high-growth strategy, has apparently pegged Coinbase as the latest undervalued disruptor.
Wood has made 20 purchases of COIN since March 25, buying between 3,900 and 187,000 shares with each investment. In fact, in the past week alone, Wood has purchased COIN on three separate occasions across her various funds.
Coinbase is now Ark’s ninth-largest holding across its entire array of ETFs, just below DraftKings (NASDAQ:DKNG) and slightly edging out Twilio (NYSE:TWLO). In Wood’s flagship ARK Innovation ETF (NYSEARCA:ARKK), COIN is actually the eighth most prominent holding, while in the Ark Fintech Innovation ETF (NYSEARCA:ARKF), it ranks as the fourth-largest investment.
Wood’s recent purchases could be seen as buying the dip, as the crypto platform treads near its 52-week low.
COIN Stock Drops Despite Wood’s Interest
While Wood continues to claim more shares of Coinbase, other investors are largely doing the opposite. Coinbase is down more than 70% this year, likely a consequence of a wider crypto and general market downturn. Indeed as crypto flagships like Bitcoin (BTC-USD) fall, related companies and other digital assets tend to do the same. COIN has been one of the greater victims of the crypto pullback.
The No. 2 crypto exchange by market capitalization, Coinbase has certainly seen better days. COIN closed down nearly 10% today, trading for about $66 per share. At its peak Coinbase was trending around $368 a share.
Wood clearly has faith the crypto platform will make a comeback, something Ark itself is looking to mirror. Indeed, ARKK is down nearly 60% year to date, wiping recent yearly gains nearly off the table. Regardless, Wood continues to buy high-growth disruptors even amid interest rate hikes, rising inflation and global supply hiccups.
Whether Coinbase ends up making the recovery Wood is clearly targeting remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.