SoFi Technologies (NASDAQ:SOFI) is a legitimate, chartered bank with innovative concepts for personal finance. Does that mean everyone should invest in SOFI stock, though? Recent news about SoFi Technologies may disappoint cryptocurrency enthusiasts.
On the other hand, a well-known fund manager who seems to be crypto-friendly recently bought a sizable chunk of SoFi Technologies shares. So, let’s delve into the details and then consider whether you should invest in SoFi.
Which Famous Fund Added SOFI Stock?
Interestingly, Wood (or more accurately, Ark Invest) bought $1.5 million worth of SOFI stock. That’s a big chunk, and this purchase clearly signals Wood’s confidence in SoFi Technologies. Still, it’s difficult to determine exactly why Wood invested so much money in SoFi.
In contrast, Ark Invest reportedly sold shares of Coinbase (NASDAQ:COIN) stock. Is Wood trying to make a statement here? Is Ark Invest deliberately shifting away from cryptocurrency and blockchain-related investments?
There’s no way to know the answers to these questions, but I can certainly report that CEO Anthony Noto bought $5 million worth of SoFi Technologies shares during the past 12 months (as of mid-November). So, if insider trading is important to you, then Noto’s notable share purchase could be just as meaningful as Wood’s SOFI stock sale.
SoFi Technologies Exits the Crypto Trading Business
SoFi Technologies is migrating its current crypto trading clients to another firm, Blockchain.com. Some clients may choose to stop trading cryptocurrency altogether.
This raises a significant question. Is SoFi Technologies (and, by extension, Ark Invest) trying to distance itself from the crypto community in the wake of the scandals surrounding FTX and Binance?
This is a valid concern, especially for Bitcoin bulls. If you’re serious about getting direct exposure to cryptocurrency’s potential future growth and adoption, you should probably own COIN stock instead of SOFI stock.
Alternatively, you can hold both stocks, but with a larger position in Coinbase shares. There are still reasons to invest in SoFi Technologies, such as the company’s impressive 27% year-over-year net revenue growth and astounding 121% adjusted EBITDA increase in 2023’s third quarter.
Bitcoin Bulls Don’t Have to Own SOFI Stock
SoFi Technologies is a one-stop shop for personal finance services – or at least, it was until recently. Now, SoFi appears to be distancing itself from the world of cryptocurrency and the blockchain.
Consequently, Bitcoin bulls can choose not to own SoFi Technologies. Or, they can hold a small position in SOFI stock and a larger stake in COIN stock. Meanwhile, feel free to monitor the purchases and sales of Wood and Ark Invest, but also note Noto’s confident investment in his own company, which speaks volumes.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.