Wood's Ark Invest nearly liquidates Silvergate Capital position

[January 07, 2023]  By David Randall
 
NEW YORK (Reuters) - Star stock picker Cathie Wood's Ark Invest sold 403,990 shares of embattled crypto-focused bank Silvergate Capital Corp on Thursday as shares in the firm plunged more than 40%, according to disclosures by Ark Invest. 

Cathie Wood, Founder, CEO, and CIO of ARK Invest, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 2, 2022. REUTERS/David Swanson/File Photo

The selling nearly liquidated the firm's share holdings and came from the $645 million ARK Fintech Innovation ETF, and not the firm's flagship $5.9 billion ARK Innovation fund, which does not have a position in the company.

Silvergate Capital said it would cut its workforce by 40% after investors pulled more than $8 billion in deposits in the wake of the collapse of FTX. Total deposits from digital asset customers at Silvergate fell to $3.8 billion at the end of December, compared to $11.9 billion at the end of September.

Ark Invest first bought shares in Silvergate in November, 2019, according to Morningstar data.

Shares of Silvergate were down 9.2% in midday trading on Thursday, while shares of the ARK Fintech Innovation fund were up 0.8%.

(Reporting by David Randall; Editing by Josie Kao)

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