ARK Invest Sells $22M in Coinbase Shares, Increases Bullish Stake
By John Nada·Feb 8, 2026·5 min read
ARK Invest has sold $22 million in Coinbase shares while increasing its stake in Bullish, signaling a notable shift in its investment strategy.
ARK Invest, led by Cathie Wood, has intensified its sell-off of Coinbase shares, offloading $22 million worth across various ETFs. The firm sold a total of 134,472 Coinbase Global shares, including 92,737 from the ARK Innovation ETF, 32,790 from the Next Generation Internet ETF, and 8,945 from the Fintech Innovation ETF.
This latest sale follows a previous transaction where ARK sold 119,236 Coinbase shares worth about $17.4 million. Notably, this was ARK's first Coinbase sale of 2026, and after a brief purchase earlier in the week, it marks a significant shift in strategy for the investment firm.
Cathie Wood’s ARK Invest continued reducing its exposure to crypto exchange Coinbase on Friday, unloading $22 million worth of shares across multiple exchange-traded funds (ETFs) while adding to its position in digital asset platform Bullish. According to ARK’s trade disclosures, the firm sold 92,737 Coinbase Global shares from the ARK Innovation ETF (ARKK), 32,790 shares from the Next Generation Internet ETF (ARKW), and 8,945 shares from the Fintech Innovation ETF (ARKF). The combined transactions totaled 134,472 shares, worth around $22.1 million.
The sale came as ARK Invest, led by Cathie Wood, has reversed course on Coinbase, selling 119,236 COIN worth about $17.4 million on Thursday after a brief purchase earlier in the week. This Thursday sale was significant as it marked ARK’s first Coinbase sale of 2026 and its first since August 2025. This series of transactions indicates a tactical recalibration on the part of ARK, as the firm seems to be reassessing the viability of its investments in the digital asset exchange amid a challenging market landscape.
Simultaneously, ARK increased its investment in Bullish, purchasing a total of 393,057 shares across its funds. The decision to reduce exposure to Coinbase while boosting Bullish reflects a broader strategy amid the challenges faced by digital asset markets, particularly as Coinbase's stock has underperformed relative to major cryptocurrencies like Bitcoin and Ethereum.
Coinbase stock climbed during the Friday session, closing at about $165 after gaining roughly 13% on the day. However, the exchange’s shares are still down by 26% year-to-date (YTD), according to data from Google Finance. This discrepancy between the short-term increase and the longer-term decline highlights the volatility and uncertainty inherent in the cryptocurrency market.
As ARK continues to navigate these turbulent waters, the firm appears to be making more calculated decisions with respect to its crypto investments. The decision to sell off Coinbase shares can be seen as a response to the underperformance of the stock, which has failed to keep pace with the price movements of leading cryptocurrencies such as Bitcoin and Ethereum. This underperformance can be attributed to a broader slowdown in centralized exchange trading volumes, which dropped by 9% quarter-on-quarter following significant liquidation events that occurred last October.
The fourth-quarter pullback in digital asset markets has indeed weighed heavily on several of Cathie Wood’s ARK ETFs. In its latest quarterly report, ARK noted that weakness in companies tied to digital assets, particularly Coinbase, was a major drag on flagship funds including ARKK, ARKW, and ARKF. Notably, Coinbase shares fell more sharply than major cryptocurrencies during this period, declining nearly 35% from October to year-end.
The sluggish performance of Coinbase can be further contextualized by its recent financial results. In the fourth quarter of 2025, the company reported a net loss of $563.6 million, or $3.73 per diluted share. This represents a stark reversal from the profit of $158.5 million recorded just a year earlier. Such dramatic fluctuations in profitability have undoubtedly impacted investor sentiment and contributed to the stock's downward trajectory.
In stark contrast, ARK's accumulation of Bullish shares signals a potential pivot in investment strategy. During the same trading day, ARK accumulated shares of Bullish across multiple funds, purchasing 278,619 shares in ARKK, 70,655 shares in ARKW, and 43,783 shares in ARKF, resulting in a total purchase of 393,057 shares worth $10.7 million. This move underscores ARK's confidence in Bullish as a growing player in the digital asset space, despite the challenges that the broader market has faced in recent months.
Bullish shares ended the trading day near $27, up about 10%. However, it is important to note that Bullish's stock is also down by 27% YTD. This decline adds complexity to ARK’s investment decision, as the firm is investing in a company that has yet to demonstrate consistent profitability. Investors will be watching closely to see how Bullish navigates its financial challenges and whether it can stabilize its performance moving forward.
Alongside the crypto moves, ARK has also been diversifying its portfolio by adding positions in other sectors. The firm has recently added stocks in Alphabet, Recursion Pharmaceuticals, and Tempus AI, while also reducing exposure to several high-growth technology companies including Roku, The Trade Desk, and PagerDuty. This indicates that ARK is not solely focused on the cryptocurrency market but is also looking for growth opportunities across various sectors.
As the cryptocurrency landscape continues to evolve, the decisions made by firms like ARK Invest will be critical in shaping the future of digital asset investments. The shift away from Coinbase indicates a cautious approach in response to market conditions, while the increased stake in Bullish suggests a search for potentially more robust investment opportunities.
In conclusion, ARK Invest's recent transactions reflect a significant recalibration of its investment strategy in the face of persistent market challenges. As Cathie Wood and her team continue to navigate the complexities of the digital asset space, their ability to adapt and respond to changing market dynamics will be closely scrutinized by investors and analysts alike. Whether these strategic shifts will yield favorable results in the long run remains to be seen, but the ongoing volatility in the cryptocurrency market is likely to keep ARK's decision-making in a state of flux for the foreseeable future.