Cathie Wood is selling crypto stock and buying this social media one, why?

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Updated on Sep 26, 2024

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Ark Invest sold shares of Coinbase (NASDAQ: COIN) while boosting its investment in Pinterest (NYSE: PINS).
Ark Invest sold nearly 11,000 shares of Coinbase, totaling approximately $2.8 million, across its ETFs.
Ark Invest displayed confidence in Pinterest, acquiring 34,653 shares valued at $1.12 million.

In a move that caught the eyes of investors and analysts alike, Cathie Wood’s Ark Invest made significant trading decisions on Wednesday, offloading shares in Coinbase Global Inc (NASDAQ:COIN) and simultaneously increasing its stake in Pinterest Inc (NYSE:PINS).

These trades signal a strategic shift in Ark Invest’s portfolio, raising questions about the underlying reasons and potential impacts on the broader investment landscape.

The Coinbase conundrum: Why sell now?

Ark Invest’s decision to sell 10,995 shares of Coinbase, valued at approximately $2.8 million, through its various ETFs including ARK Innovation ETF (NYSE:ARKK), ARK Next Generation Internet ETF (NYSE:ARKW), and Ark Fintech Innovation ETF (NYSE:ARKF), has left many pondering the timing.

This move came as Bitcoin reached new all-time highs, soaring to $73,709 on the same day.

The sell-off of Coinbase shares, which closed 1.7% lower at $251.73, coincides with a surge in investments into U.S.-based Bitcoin ETFs, marking a significant moment for cryptocurrency investments.

The Pinterest play: What’s the attraction?

Ark Invest demonstrated a bullish outlook on Pinterest by purchasing 34,653 shares across ARKK and ARKF, amounting to $1.12 million.

This acquisition occurred as Pinterest’s shares dipped slightly by 0.8% to close at $34.60 on Wednesday.

Pinterest has been actively pursuing monetization strategies, including a partnership with Google, akin to its collaboration with Amazon.

Given Pinterest’s 53% surge last year and a 9.5% rise since the onset of 2024—despite a post-earnings drop—Ark Invest’s increased stake raises questions about its vision for the social media platform’s future growth and profitability.