Dec 14, 2022
Cathie Wood Boosts Tesla, Coinbase Holdings on Dip-Buying Binge
(Bloomberg) -- Cathie Wood scooped up more shares of Tesla Inc. and Coinbase Global Inc., underscoring her faith in electric vehicles and cryptocurrency as key trends for the future.
A gamut of Ark Investment Management LLC’s funds, including Wood’s flagship Ark Innovation ETF, bought nearly 75,000 shares of the EV maker and about 297,000 of the cryptocurrency exchange operator on Wednesday, continuing a dip-buying streak that started in October, according to data compiled by Bloomberg.
Ark has continued its purchases in Coinbase despite unprecedented volatility induced by the collapse of Sam Bankman-Fried’s FTX crypto empire. Coinbase shares plumbed a record low on Tuesday, before recovering slightly on Wednesday.
Wood’s biggest fund, ARK Disruptive Innovation Strategy, is down 60% this year, compared with a loss of 28% for the Nasdaq 100 and a 16% decline for the S&P 500. She last month reiterated her $1 million target for Bitcoin, the largest crypto token, which currently trades around $17,600.
Meanwhile, Tesla shares are at their lowest in more than two years amid concerns over a potential recession, a hawkish Federal Reserve, and founder Elon Musk’s moves to reduce his stake in the EV maker.
READ: Tesla Closes Below $500 Billion Valuation First Time in 2 Years
Wood’s firm is one of the largest shareholders of Coinbase, holding a 4.3% stake as of Sept. 30, according to Bloomberg data. Ark holds just 0.13% of Tesla but the stock remains one of the top holdings of its main fund.
Shares in Tesla fell 2.5% in premarket trading on Thursday, and those of Coinbase also slid 2.5%.
--With assistance from Subrat Patnaik.
(Updates with stock moves.)
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