Cathie Wood keeps buying TONS of Coinbase Shares! $COIN
Cathie Wood, the renowned growth investor and founder of Ark Invest, has been increasing her holdings in Coinbase, the leading cryptocurrency exchange. In fact, her investment firm purchased more shares of Coinbase on Thursday than it did throughout the entire month of January.
Cathie Wood loves Coinbase
Despite the recent turbulence in the cryptocurrency market, Cathie Wood’s Ark Invest has continued to show confidence in Coinbase, as evidenced by its recent purchase of over 350,000 shares – including 301,437 shares to its ARK Innovation ETF and 52,525 shares to its Next Generation Internet ETF – marking the largest one-day acquisition of Coinbase shares by the firm this year.
This purchase, valued at $20.6 million based on the closing price on Thursday, underscores Ark Invest’s continued support for the cryptocurrency exchange.
Cathie Wood Buys the Dip on Coinbase Stock Two Days After Dumping
► https://t.co/Wtqb8P9aSJ https://t.co/Wtqb8P9aSJ— Decrypt (@decryptmedia) March 24, 2023
The firm has continued to buy up shares of the exchange, bringing its total holdings to 9.9 million Coinbase shares, worth $575 million at Thursday’s closing price. This represents 3.8% of the exchange’s market cap, which is just under $15.1 billion according to Nasdaq.
At the start of 2023, Coinbase’s stock price demonstrated impressive performance, surging from approximately $34 to $81 in January, representing a 100% increase in value. However, the stock has experienced a slight decline this month after this initial surge. However, the regulatory outlook for the digital asset sector remains uncertain, and Coinbase is not immune to regulatory scrutiny.
The Securities and Exchange Commission (SEC) has recently targeted Kraken, a crypto exchange, for its “staking” service, which the regulatory body alleges is operating without proper registrations and disclosures.
This has put the spotlight on similar services provided by other cryptocurrency exchanges, including Coinbase, and has added to the uncertainty surrounding regulatory compliance in the digital asset sector. However, the company (Coinbase) argues that its business is sufficiently different from Kraken’s.
Despite the unclear regulatory environment, there are still some analysts who maintain a positive outlook for Coinbase’s future growth and performance. Richard Repetto from Piper Sandler believes that longer-term regulatory clarity is likely positive for both the crypto industry and Coinbase itself.
Coinbase’s Q4 earnings report, which was released on Tuesday, surpassed expectations and initially boosted investor confidence.
However, this positive sentiment was short-lived, as the company’s stock prices experienced a slight decline on Wednesday, ultimately closing the day down 1.43% at a trading price of $61.18. Then on Thursday, as the crypto market saw red, Coinbase shares sank almost 8%.
Despite the recent volatility, Cathie Wood and Ark Invest appear to be betting on the long-term potential of Coinbase. Despite the increasingly uncertain regulatory outlook for the digital asset
[…] ARKK’s performance has seen significant dips, mirroring the rollercoaster that is tech investing. Critics have been quick to point out her high-risk, high-reward strategy, likening it to a high-stakes poker game. Some of her notable investments include Coinbase ($COIN), Tesla ($TSLA) and Nvidia ($NVDA). […]