Cathie Wood Cuts Twitter Stake By $5.3M Amid Takeover Bids From Elon Musk, Others

Cathie Wood-led Ark Investment Management on Tuesday sharply trimmed its Twitter Inc TWTR stake as the microblogging site faces buyout bids from Tesla Inc TSLA CEO Elon Musk and other private equity firms.

The St. Petersburg, Florida-based money managing firm sold 114,576 shares, estimated to be worth $5.28 million, in the social media company.

Twitter stock closed 4.7% lower at $46.16 a share on Tuesday and is up 8.2% so far this year.

Ark has significantly trimmed its stake in Twitter this year just months after placing huge bets on the microblogging site. A bulk of the exposure was lowered in February when the company reported quarterly earnings.

See Also: Cathie Wood Trims Twitter Stake By $8.7M As Elon Musk Declines Board Seat

The firm currently holds Twitter shares via two of its six actively traded exchange funds — the Ark Next Generation Internet ETF ARKW and the Ark Fintech Innovation ETF ARKF.

The two ETFs held 1.12 million shares of Twitter, worth $54.6 million, before Tuesday’s trade. The latest sale lowers Ark Invest’s exposure to Twitter by about 10%.

See Also: Apollo Global Ready To Team Up With Elon Musk For Twitter Bid: Report

Apart from Musk’s $43 billion takeover bid, Twitter has also caught the interest of other buyout firms, one of which is considering teaming up with the world's richest man.

The company’s board has put a "poison pill" in place to thwart Musk’s attempt to buy more stake in Twitter. The billionaire entrepreneur currently owns about 9% of the social media firm.

Twitter may provide more details during its quarterly earnings report next week. 

Here are a few other key Ark Invest trades from Tuesday:

• Bought 782,043 shares, estimated to be worth $3.75 million, in Velo3D Inc VLD. The stock closed 1.2% lower at $4.8 a share on Tuesday.
• Bought 100 shares, estimated to be worth $261,062, in Alphabet Inc Class C GOOG. The stock closed 2% higher at $2,610.6 on Tuesday.