"Buy the dip or catch the falling knife? Ark Investment's Cathie Wood keeps buying Coinbase, with an average cost four times higher than the market price."

The U.S. cryptocurrency exchange Coinbase has recently been accused by the U.S. SEC and multiple state regulatory agencies of violating securities laws with its lending service, causing its stock price to plummet by nearly 20% over two days. Ark Invest, the fourth largest shareholder, has shown support by purchasing an additional 419,324 shares of Coinbase stock worth $21.6 million across three funds, including the flagship Ark Innovation ETF. Founder Cathie Wood remains optimistic, stating that Binance is facing more criminal charges, including fraud, due to increased regulatory scrutiny, leading to the disappearance of competitors for Coinbase, which she sees as a positive development in the long run.

How is Ark's Performance in Buying Coinbase?

Ark Invest's continuous buying of Coinbase, how is the performance? Is it buying the dip or catching a falling knife? According to the statistical data on Cathie's Ark website, Cathie Wood's Ark Invest started buying Coinbase stocks as early as the second quarter of 2021, having purchased a total of 11.43 million shares to date, with an average cost well above $200, compared to the current market price of $53, which is more than four times higher. The estimated loss is over $2 billion.