Ark Invest Offloads $29.1M Worth of Block Inc. Shares, Buys Coinbase

In a strategic move to rebalance its portfolio, Cathie Wood's Ark Invest has offloaded 526991 shares of Block Inc., worth approximately $29.1 million, over the past two trading days.

Cathie Wood’s Ark Invest has sold 526,991 shares of Block Inc., valued at approximately $29.1 million, over the past two trading days, according to the latest trade filings.

The latest figures from Ark's report on Monday, May 13, indicate that the ARK Innovation ETF (ARKK) sold 203,659 shares of Block Inc., also known as Square, on Tuesday, May 14.

Earlier this week, Ark disclosed the sale of 323,332 shares in Block on Monday, May 13.

Block's stock saw a 1% increase, closing at $55.29 on Tuesday. However, the payments company, headed by Jack Dorsey, has experienced a 36% year-to-date decline in its stock value.

Block Inc. is recognized for its Cash App service, widely used for transferring money and engaging in cryptocurrency transactions, such as buying, selling, and holding Bitcoin.

With the cryptocurrency industry undergoing significant changes, Block Inc.'s involvement in digital finance has made it a key player in the sector.

Despite the stock's performance struggles in 2024, Block Inc. remains a major component of Ark Invest's portfolio. As of Tuesday, Block held a 2.68% weight in the ARKK ETF, making it one of the fund's notable holdings.

Earlier this year, Cathie Wood has highlighted that Ark Invest aims to keep individual stock holdings below 10% of any fund's total portfolio.

This disciplined approach ensures diversification within the fund while maintaining optimal exposure to high-growth industries, such as fintech, artificial intelligence, and blockchain technology.

While trimming its stake in Block Inc., Ark Invest made a notable addition to its portfolio by acquiring 52,753 Coinbase (NASDAQ:COIN) shares, worth about $9.4 million, for its ARKK ETF.

Additionally, the firm purchased 11,605 Coinbase shares, valued at $2.1 million, for the Ark Fintech Innovation ETF.

Following these acquisitions, Coinbase now holds a 7.06% weight in the ARKK fund, making it the third-largest holding within the ETF.

The move signals Ark's confidence in Coinbase's long-term potential as a leading cryptocurrency exchange and blockchain services provider.