Cathie Wood’s Ark Invest purchased 24,790 shares of Coinbase for $3.4 million on Monday, Nov. 2.
Morgan Stanley also downgraded Coinbase to underweight the same day, slashing its price target to $120 from $258.
Coinbase shares closed down 3.98% at $137.83. The buying was through Ark’s ARKK, ARKW and ARKF exchange-traded funds.
Cyprys pegs fourth-quarter transaction revenue 11% under consensus
Analyst Michael Cyprys cut the stock to underweight from equal weight. New target hints at 16% downside from Friday close.
Cyprys’ initiation thesis called for earnings to reset in 2026 and bounce back sharply in 2027. Shares of Coinbase are down about 25% over the past month.
“October’s weaker trading pace and crypto market uncertainty challenge our recovery thesis,” Cyprys wrote.
His note pegged fourth-quarter transaction revenue through Oct. 25 at about $165 million. The pace would put the quarter at about $607 million, or about 11% below the $685 million consensus.
Cyprys also cited the ~$6 billion Binance hack last week as a negative for crypto trading. Morgan Stanley slashed its Coinbase revenue estimates for 2027 by 28% and its adjusted EBITDA estimate by 47%.
The bank cut its 2028 revenue forecast by 18% and adjusted EBITDA estimate by 25%. It also trimmed its EBITDA multiple for Coinbase to 12 times from 20 times.
The call runs counter to most of Wall Street. Of the 41 analysts covering Coinbase, 26 rate it buy or strong buy, and 13 rate it hold.
Cathie Wood’s funds add $2.6M of Circle and sell $2.3M of Bullish
Ark also purchased 35,657 shares of Circle worth $2.6 million and 7,703 shares of Robinhood worth $645,820. Shares of Circle fell 0.63% to $72.08, and Robinhood declined 1.35% to $83.84.
On Friday and Monday, the three funds bought 64,208 Coinbase shares and 110,551 Circle shares. They sold 342,545 Bullish shares in the two sessions.
Ark sold Bullish shares, offloading 104,172 on Monday alone for $2.3 million as the stock slid 5.69% to $22.54.
Ark’s Nov. 2 filing for its ARKK holdings shows a 3.78% weighting in 1,622,945 Coinbase shares. Circle’s weighting is higher, with 3,813,256 shares worth $276.6 million, or 4.48% of the fund.
Robinhood has a weight of 2.82% and 2,047,447 shares. Bullish is at 1.47% post-sale.
The trades came days after Coinbase’s third quarter results. Net income climbed 66% year-over-year to $719 million, while revenue fell 35% to $1.22 billion, according to Cryptopolitan .
Coinbase’s prediction markets blew past $200 million in annualized revenue, or about twice the previous quarter. Robinhood said its crypto revenue rose 20% from the prior quarter to $120 million.
Ark took its ARK Venture Fund onchain through Securitize in September.
Circle reports third-quarter earnings Wednesday, Nov. 4. Analysts anticipate revenue of $788.17 million and earnings per share of $0.37. Bullish will report on Nov. 18.
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