Cathie Wood’s ARK portfolio has been boosted by the over 100 percent year-to-date increase in Coinbase shares due to Bitcoin’s rebound in 2023.
In 2023, Bitcoin and Cathie Wood’s Coinbase investment surpass Warren Buffett’s well-known “crypto bet” on Brazil’s fintech powerhouse Nubank.
Year-to-date, Bitcoin’s price has increased by over 55% as of March 17. Nubank, doing business as NU, has risen by just 26%. Coinbase (COIN), a third crypto-exposure stock, has had the most year-to-date (YTD) increase, gaining over 100%.
Despite this, Buffett’s investment has performed better than COIN during the last year. As of March 17, NU is down 38% year-over-year compared to COIN’s 61.76%, almost identical to Bitcoin’s 37% loss within the same period.
Berkshire Hathaway, Buffett’s investment business, acquired $1.5 billion of class-A Nubank shares in two separate transactions in July 2021 and February 2022.
Buffett is a well-known bitcoin critic, and Nubank’s Nucripto division provides crypto trading services; thus, the revelation surprised many. The bank announced in May 2022 that it would devote 1% of its net assets to Bitcoin.
Nubank said, “This step underscores the company’s belief in Bitcoin’s present and future potential to disrupt financial services in the area.”
According to Berkshire’s most recent annual earnings report, Buffett has not sold a share despite Nubank’s crypto exposure and NU’s price decrease.
Although a volatile market, the choice to maintain NU holdings corresponds with Nubank’s expansion in the Latin American banking industry.
The parent business of Nubank, Nu Holdings, claimed a prosperous 2022 with 140% year-over-year revenue growth and a 38% increase in active clients. The same cannot be accurate for Coinbase’s income in 2022, which will decrease by 57% year-over-year.
Cathie Wood, chief executive officer of ARK Invest, is unaffected and will continue purchasing COIN shares via her ARK Next Generation Internet ETF and ARK Innovation ETF in 2023. Namely, the COIN purchases account for around 30% of all stocks acquired so far this year.
Thus, Coinbase has become Wood’s fifth-largest investment on record, with a value of around $670 million at the time of writing.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.