Coinbase shares have taken a big hit following disappointing results and a report that the company is being investigated by the U.S. Securities and Exchange Commission.
Three funds of Cathie Wood’s Ark Investment Management sold a total of more than 1.4 million shares of Coinbase Global (COIN) on Tuesday, the firm said in its daily trading update email on Wednesday.
The move comes almost three months after Ark bought more than half a million shares in May.
On Tuesday, Coinbase shares closed down 21.08% at $52.93. Based on Tuesday’s closing price, the value of the offloaded shares would be over $75 milllion. Coinbase shares were trading 5.72% higher at $55.96, during after-hours trading.
ARK Innovation Exchange-Traded Fund (ETF), or AARK, sold 1,133,495 COIN shares, or 0.6833% of the fund’s of the fund’s total investments.
ARK Next Generation Internet ETF, or ARKW, sold 174,611, shares, or 0.6768% of the fund’s total investments.
ARK Fintech Innovation ETF, or ARKF, sold 110,218 shares, or 0.6793% of its total fund investments.
Read more: Coinbase’s Q1 Revenue Misses Estimate as Trading Volume Drops, Shares Fall Almost 16%
The plunge in the cryptocurrency market has seen Coinbase digital shares fall from a high of over $400 on its first day of trading in 2021 to as low $40.30 at one point, as user transactions declined and a report that that U.S. Securities and Exchange Commission is investigating the company for allowing Americans to trade in tokens that should have been registered as securities.