ARK Invest’s Bold Move: Dumps $105.3M in Coinbase After Record High to Bet Big on Tesla
In a stunning move, ARK Invest has sold $105.3 million worth of Coinbase (COIN) shares after the cryptocurrency exchange hit a record high. This strategic shift highlights ARK’s high-conviction approach, as it reallocates capital toward Tesla (TSLA). What does this mean for the crypto market and ARK’s future bets? Let’s dive in.
ARK Invest’s Strategic Exit from Coinbase
ARK Invest, led by Cathie Wood, executed a swift exit from its Coinbase holdings after the stock surged to a record high of $444.65 on July 18, 2025. The firm sold $105.3 million worth of COIN shares between July 21 and 24, demoting Coinbase from its top holding to second place. This move came as Coinbase surpassed its previous peak of $429 set in April 2021.
Why ARK Invest Shifted to Tesla
ARK Invest’s reallocation of capital toward Tesla is no coincidence. The firm purchased $43.7 million in Tesla shares during the same period, elevating Tesla to its top holding with a $1 billion stake. Cathie Wood has long been bullish on Tesla, projecting its stock could reach $2,600 by 2030. She emphasizes the potential of Tesla’s robotaxi platform over its automotive business, calling it a recurring revenue stream.
What This Means for the Crypto Market
ARK’s exit from Coinbase suggests a reassessment of risk in the crypto market. While Coinbase benefited from a broader rally in crypto and fintech, ARK’s move indicates a preference for growth narratives like Tesla’s robotics ambitions. The firm’s $803.5 million stake in COIN remains substantial, but the tactical shift raises questions about ARK’s risk management in volatile sectors.
Key Takeaways from ARK’s High-Conviction Trade
- ARK Invest sold $105.3M in Coinbase after a record high.
- The firm shifted focus to Tesla, buying $43.7M in shares.
- Cathie Wood projects Tesla’s stock could hit $2,600 by 2030.
- The move reflects ARK’s preference for AI and electrification trends.
FAQs
Why did ARK Invest sell Coinbase shares?
ARK Invest likely sold Coinbase shares to capitalize on the stock’s record high and reallocate capital toward Tesla, which aligns with its long-term growth narrative.
What is Cathie Wood’s outlook for Tesla?
Cathie Wood projects Tesla’s stock could reach $2,600 by 2030, driven by its robotaxi platform and autonomous technology.
Does ARK Invest still hold Coinbase shares?
Yes, ARK Invest retains an $803.5 million stake in Coinbase, though it is no longer the firm’s top holding.
What does this mean for the crypto market?
ARK’s move suggests a potential reassessment of risk in the crypto market, favoring more immediate growth opportunities in sectors like AI and electrification.
