Ark Invest, led by Cathie Wood, increased positions in three crypto-linked equities on Monday even as the stocks closed lower. The firm bought 24,790 shares of Coinbase Global Inc. worth about $3.4 million through its ARKK, ARKW and ARKF ETFs. Coinbase ended Monday down 3.98% at $137.83.
Ark also purchased 35,657 shares of Circle Internet Group Inc. for roughly $2.6 million and 7,703 shares of Robinhood Markets Inc. valued at about $645,820. Circle slipped 0.6% to $72.08, while Robinhood fell 1.35% to $83.84. The firm sold 104,172 shares of Bullish, worth around $2.3 million, after Bullish stock dropped 5.69% to $22.54.
The moves came after Coinbase released strong third-quarter results. Net income rose 66% year over year to $719 million, total revenue was $1.22 billion—flat from the prior quarter but down 35% annually—and its prediction markets business surpassed $200 million in annualized revenue. Bernstein analysts said growth in prediction markets and subscription and services revenue helped offset softer crypto trading activity.
However, Morgan Stanley downgraded Coinbase to Underweight from Equal-Weight and cut its price target to $120 from $258, citing weaker trading activity, a softer revenue outlook and uncertainty following the Binance hack. Robinhood reported record third-quarter revenue of $1.424 billion, but crypto revenue fell 55% year over year to $120 million. Circle is scheduled to report earnings on Nov. 4, with consensus estimates of $788.17 million in revenue and EPS of $0.37; Bullish reports Nov. 18. The OCC recently issued a final rule on payment stablecoin issuance, relevant to Circle’s USDC.
Ahead of Tuesday’s U.S. midterm elections, Bitcoin market watchers were divided, with some arguing Bitcoin had already bottomed and analyst Ali Martinez identifying $73,000 as a key level to watch.
