Cathie Wood's Ark Invest scoops up $5.5 million of Coinbase stock as crypto market turmoil weighs on the exchange

• Cathie Wood's Ark Invest purchased $5.5 million worth of Coinbase shares this week.
• The famed money manager now holds $47 million worth of the company's stock in its Ark Fintech Innovation ETF.

Cathie Wood's Ark Invest purchased $5.5 million worth of additional Coinbase shares on Thursday, continuing the investment firm's dip-buying spree as turmoil weighs on the cryptocurrency platform.

The famed money manager now holds $47 million worth of the company's stock in its Ark Fintech Innovation ETF (ARKF). Coinbase makes up 7.14% of its holdings, with a total of 1.35 million shares.

Ark Invest is also one of Coinbase's largest shareholders, holding a 4.3% stake as of September 30, according to Bloomberg data.

It's been a tough year for Coinbase. The company's stock is down 86.29% year-to-date, currently trading near records lows at $34.13.

The company continues to take hits from a prolonged crypto bear market, along with a harsh macro environment that's left investors wary of tech equities across the board.

CEO Brian Armstrong has warned the company's revenue this year will plunge more than 50%.

"(Chief Executive Officer Brian Armstrong) indicated that he expects Coinbase FY2022 revenue to be less than half of FY2021 revenue," Coinbase said in a December 9 tweet.

The collapse of Sam Bankman-Fried's FTX last month dragged down the industry even further. The credibility of the nascent space is in question after the bankrupt exchange's meltdown, causing shareholders to turn away from their crypto-related bets.

Ark Invest is taking this time as an opportunity to buy the embattled exchange's stock at a discount, showing the fund's longstanding conviction for both Coinbase and digital assets more broadly.

Following FTX's downfall, Wood predicted that bitcoin will hit $1 million by 2030, representing a nearly 6,000% increase from its current price. She said the cryptocurrency will come out of the bear market smelling like a "rose," according to Bloomberg.

Meanwhile, Wood has had a rough year too, with ARKF down 65.85% year-to-date. But she has previously said that companies in her funds are "sacrificing short-term profitability for exponential and highly profitable long term growth," according to the Wall Street Journal.