A Month Into Spelling The Bull Case For Silvergate, Cathie Wood's Ark Invest Has Cut Stake In Bitcoin Play By 59%

A Month Into Spelling The Bull Case For Silvergate, Cathie Wood's Ark Invest Has Cut Stake In Bitcoin Play By 59%

Cathie Wood-led Ark Invest has shed a significant stake in Silvergate Capital Corp SI, a month into saying that the cryptocurrency-focused financial institution could be a prime beneficiary of increased crypto adoption.

What Happened: The New York-based investment firm has sold over 1 million shares in the California-based bank that has for several years served crypto firms as a core part of its business, since April 17, when it last issued a bullish commentary on the stock.

The investment firm, which has been snapping up U.S. cryptocurrency exchange desk Coinbase Global Inc COIN, holds positions in Silvergate via its Ark Fintech Innovation ETF ARKF and the ARK Next Generation Internet ETF ARKW.

Ark Invest had already sold some of its stake in Silvergate in the runup before Coinbase’s debut in April.

In value terms, the investment firm’s consolidated stake is down to $65.07 million from $248.5 million, a drop of about 73.8% since April 19. In volume terms, ARKW unloaded over half a million shares and ARKF shed 459,733 shares, during the period.

Currently, Ark owns a total of 764,617 Silvergate shares, a majority of them in ARKW, down from 1,868,608 shares in mid-April.

Price Action: Silvergate Capital shares have plunged 36% since April 19, despite an earnings beat reported during the month. Shares of ARKF and ARKW have fallen over 11% during the period. During the period, Coinbase shares have fallen 9%. 

On Tuesday, Silvergate shares closed 2.4% lower at $85.1.

Bitcoin (BTC) is up 2.4% over 24 hours at $57,191.63 at press time on Wednesday.

Read Next: Cathie Wood Loads Up $57M In Palantir As Stock Stages Reversal On Q1 Earnings Beat

Posted In: ARK InvestBitcoinCathie WoodCryptocurrencySector ETFsMarketsETFs

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