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 (NYSE: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 (NASDAQ:COIN), holds positions in Silvergate via its Ark Fintech Innovation ETF (NYSE:ARKF) and the ARK Next Generation Internet ETF (NYSE: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.
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