Coinbase: A Strategic Pillar in Ark Invest’s Crypto Portfolio Rebalancing
In a notable move during a period of market volatility, Cathie Wood's Ark Invest has strategically adjusted its cryptocurrency-related holdings, with a significant focus on Coinbase. While the broader crypto market faced downward pressure, particularly from Ethereum's price decline affecting correlated equities, Ark Invest demonstrated its long-term conviction by deploying fresh capital into select digital asset infrastructure plays. The firm acquired $14 million worth of shares in BitMine Immersion Technologies, a blockchain infrastructure company, spreading the purchase across three of its ETFs. This investment signals a belief in the underlying value of blockchain hardware and operational capacity, irrespective of short-term token price fluctuations. Concurrently, and perhaps more telling for the exchange landscape, Ark Invest added a substantial $5.9 million in Coinbase (COIN) shares to its portfolio. This accumulation of Coinbase stock, even as the firm reportedly reduced its exposure to other crypto assets (the text cuts off, likely referring to shares of crypto miners or other specific tokens), highlights a calculated portfolio rebalancing. It suggests Ark views Coinbase not merely as a proxy for crypto asset prices but as a fundamental infrastructure company with a robust business model capable of weathering market cycles. The dual action of buying into physical blockchain infrastructure (BitMine) and the leading regulated exchange (Coinbase) paints a picture of a firm building positions across the crypto value chain. This strategy underscores a belief that while asset prices may be volatile, the foundational companies facilitating the ecosystem's growth represent durable investment theses. As of December 2025, this move by a high-profile investment manager like Ark Invest provides a counter-narrative to pure bearish sentiment, emphasizing selective accumulation based on long-term structural trends in digital finance.
Ark Invest Expands Crypto Holdings Despite Market Downturn
Cathie Wood's Ark Invest doubled down on its crypto bets this week, acquiring $14 million worth of BitMine Immersion Technologies shares amid a broader market slump. The purchase of 478,125 BMNR shares across three ETFs signals conviction in blockchain infrastructure plays despite Ethereum's price pressure dragging down correlated stocks.
The firm simultaneously added $5.9 million in Coinbase shares while reducing exposure to Shopify, demonstrating active portfolio rebalancing toward digital asset exposure. BitMine's 3.97 million ETH holdings make it a Leveraged play on Ethereum's recovery—a characteristic that likely appeals to Ark's long-term growth thesis.
Coinbase Challenges Three US States Over Prediction Markets Regulation
Coinbase has initiated legal action against Michigan, Illinois, and Connecticut, contesting state-level attempts to regulate prediction markets. The crypto exchange argues these markets fall under the exclusive jurisdiction of the CFTC, not state gambling laws. This move follows inconsistent court rulings that have forced some platforms to limit services in certain states.
Paul Grewal, Coinbase's Chief Legal Officer, emphasized the company's stance via social media, stating that state interference stifles innovation in neutral prediction exchanges. The lawsuit highlights Congress's deliberate exclusion of specific commodities from regulatory definitions, positioning prediction markets as distinct from traditional gambling.
