On August 3, Coinbase will release financial data for the second quarter.
On Monday, COIN stock closed up 4% at $98.61, but it dropped 3.17% in pre-market trading.
Cathie Wood, the CEO of Ark Invest, has reportedly sold millions of dollars’ worth of shares in Coinbase (COIN) and Robinhood (HOOD) ahead of the businesses’ projected weaker-than-expected second-quarter earnings reports. Despite Cathie Wood’s continued Bitcoin optimism, her firm, Ark Invest, has been unloading its crypto-related stock holdings.
Since the COIN stock price rose over $100, reaching practically a 52-week high, Cathie Wood’s Ark Invest has continued to unload Coinbase shares. However, the ARK Next Generation Internet ETF managed by Ark Invest has paused its unloading of Coinbase holdings.
According to records, on July 31st, Cathie Wood’s Ark Invest fund, ARK Next Generation Internet ETF (ARKW), sold 1,055 Coinbase shares for $105,000.
All Eyes on Q2 Earnings Report
On August 3, Coinbase will release financial data for the second quarter. Revenue for Coinbase fell last quarter as a result of a sharp decline in trading volumes caused by US crypto regulatory crackdowns. While optimism for Bitcoin’s price rally persists, Ark Invest is weighing the potential effects of the US SEC vs. Coinbase litigation.
At the time of writing, COIN stock was down 5.50% at $93.18. Also, for the first time since early January, Cathie Wood’s Ark Invest has sold some of its Robinhood stock. On July 31st, ARK Fintech Innovation ETF (ARKF) sold 373,175 HOOD shares for $4.8 million.
On August 2nd, Robinhood will release its earnings report for the second quarter. Both earnings per share and revenue are expected to increase from the previous quarter. Cathie Wood’s selling frenzy at Ark Invest suggests earnings reports will cause adverse momentum in the cryptocurrency market in the coming weeks.