Ark Invest Stock Portfolio: Top 5 Picks

2. Coinbase Global, Inc. (NASDAQ:COIN)

ARK Invest’s Stake Value: $867,320,593

Number of Hedge Fund Holders: 28

Coinbase Global, Inc. (NASDAQ:COIN) specializes in financial technology and infrastructure to support the crypto economy. It is one of the top stock picks from the Cathie Wood portfolio. In Q2 2023, Cathie Wood increased her stake in Coinbase Global, Inc. (NASDAQ:COIN) by 3%, holding 12.1 million shares worth $867.3 million. According to Insider Monkey’s first quarter database, a total of 28 hedge funds were long Coinbase Global, Inc. (NASDAQ:COIN), compared to 27 funds in the earlier quarter. 

On August 3, Coinbase Global, Inc. (NASDAQ:COIN) reported a Q2 GAAP EPS of -$0.42 and a revenue of $707.9 million, outperforming Wall Street estimates by $0.36 and $70.12 million, respectively. 

Here is what Hayden Capital has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter:

“Coinbase (NASDAQ:COIN): The crypto ecosystem moves extremely quickly, and there’s been many new developments since we first invested in Coinbase, a year ago. Most notably, crypto market cap has declined from a peak of ~$3 Trillion last fall, to ~$1.1 Trillion today (a -63% decline, and -72% peak-to-trough; LINK). Crypto is a volatile asset class, and has experienced many draw-downs of similar magnitude in the past. For example, Bitcoin was down -93% during 2011, -85% from 2013-15, and -84% from 2017-18. In this context, the latest draw-down is a pretty normal outcome for this emerging asset class.

A large reason for this volatility is simply because there aren’t any major “real-world use cases” for the asset just yet. In our letter outlining the investment last year, we wrote that crypto is still “in the middle of ‘crossing the chasm’ into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact crypto in some form”…” (Click here to see the full text)