Cathie Wood’s tech-focused investment firm, ARK Invest, bought nearly $18 million worth of Coinbase (COIN) shares shortly after the exchange was threatened with enforcement action from regulators on Wednesday.
The crypto exchange, which has been targeted by the U.S. Securities and Exchange Commission (SEC) for allegedly violating federal securities laws, traded from over $84 to less than $62 on Wednesday.
Wood scooped up 268,928 shares in the company the following day, at which time COIN closed for $66.30 apiece. That makes for a purchase of roughly $17,829,000.
By contrast, Wood dumped 160,887 shares in the firm on Tuesday for over $13 million in its first COIN sale of the year, taking profits after crypto markets and its correlated industry players surged this month.
Coinbase’s struggles against the SEC are familiar territory for Wood: her own company has repeatedly been stonewalled by the commission in its attempts to launch a Bitcoin spot ETF in the United States. Coinbase has stood by Grayscale in its attempt to launch a similar product in the past.
That wasn’t her only crypto related trade, either: Wood and ARK bought 320,557 shares of Jack Dorsey’s Block (SQ) for an estimated $19.84 million on Thursday after it experienced a similar drop amid a report from notorious short seller Hindenburg Research that alleged fraud and predatory practices, among other claims.
Block has denied the accusations and said it will work with the SEC and potentially take legal action against Hindenburg Research. The financial services firm and its subsidiary companies (Cash App, Spiral, etc) have pivoted to building various Bitcoin related projects, from Lightning wallets to mining development kits.
ARK Invest also dumped 139,642 Tesla shares worth close to $27 million on Thursday, which continue to trade flat as of Friday. Tesla CEO Elon Musk has discussed Bitcoin at length with both Wood and Dorsey in 2021, at which time the three discussed what they saw as the environmental benefits of Bitcoin mining, plus they released a joint report on the matter produced by ARK and Block.
Wood herself is bullish on Bitcoin, giving it a long term price target of $1 million while believing it can help hedge against inflation in a world of collapsing currencies.
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FAQs
Wood responded, "We are not dumping. This is what active management is all about." "Coinbase has increased roughly 9-fold since Spring of 2023," Wood continued. "It has been more than 10% of the portfolio.
Will Coinbase share price recover? ›
More recently, news and speculation around Bitcoin spot ETFs have led to a sharp recovery in cryptocurrency prices and higher trading volume on Coinbase's platform. Our current projections now see the company regaining profitability in 2024, though the longevity of such a resurgence will depend on market conditions.
Why did Coinbase stock fall? ›
Coinbase Global Inc.'s stock fell 2.7%, to outpace the 1.6% decline in bitcoin and buck the gains in the broader stock market, after the cryptocurrency exchange said its request to dismiss U.S. Securities and Exchange Commission's lawsuit was denied by a federal court.
Did Ark invest sell $90 million worth of Coinbase shares? ›
ARK Invest, an investment solutions provider and one of Coinbase's largest institutional backers, sold nearly half a million shares in the Nasdaq-listed centralized crypto exchange for about $90 million on Friday. Cathie Wood's investment firm unloaded a total of 499,149 COIN shares from its exchange-traded funds.
Why did Cathie Wood sell Coinbase? ›
Part of Ark Invest's guidelines is to not have a single stock make up more than 10% of its ETFs' value. Considering the increase in price of COIN stock recently, a selloff was necessary to maintain that goal. This resulted in COIN stock sales from three of Cathie Wood's Ark Invest exchange-traded funds (ETFs).
Why did Cathie sell Coinbase? ›
Profit-taking seems to be the primary driver behind Ark's sell-off, given its strategic buying spree when prices were low. Investors must recognize that Ark Invest's objectives differ from those of individual investors. Despite the selling, Coinbase remains a strong buy with promising long-term prospects.
Is Coinbase going to go under? ›
Coinbase doesn't appear to be on the verge of bankruptcy, but it's always worth securing your investments. You can avoid this loss entirely by ... Will Coinbase go bankrupt in the next 2-to-3 years? There's no way to know for sure, but it's unlikely that Coinbase will go bankrupt in the next two to three years.
What is the stock price prediction for Coinbase in 2024? ›
Coinbase Global Price Prediction for 2024
The median target price among these 25 analysts covering the stock is $169 which is a 25% haircut. Moreover, the stock is a consensus hold.
How much will Coinbase be worth in 2025? ›
Long-Term Coinbase Stock Price Predictions
| Year | Prediction | Change |
|---|
| 2025 | $ 381.28 | 61.28% |
| 2026 | $ 614.92 | 160.11% |
| 2027 | $ 991.75 | 319.51% |
| 2028 | $ 1,599.51 | 576.60% |
2 more rowsCoinbase Stock Forecast
The 21 analysts with 12-month price forecasts for Coinbase stock have an average target of 182.67, with a low estimate of 43 and a high estimate of 325. The average target predicts a decrease of -14.55% from the current stock price of 213.78.
The latest closing stock price for Coinbase Global as of April 23, 2024 is 236.43.
- The all-time high Coinbase Global stock closing price was 357.39 on November 09, 2021.
- The Coinbase Global 52-week high stock price is 283.48, which is 19.9% above the current share price.
Coinbase Global has a conensus rating of Moderate Buy which is based on 9 buy ratings, 10 hold ratings and 3 sell ratings.
Who owns the most Coinbase stock? ›
According to the latest TipRanks data, approximately 64.23% of Coinbase Global (COIN) stock is held by retail investors. Who owns the most shares of Coinbase Global (COIN)? Vanguard owns the most shares of Coinbase Global (COIN).
How much Coinbase stock does Cathie Wood own? ›
11 Cathie Wood Coinbase Global Trades
Cathie Wood acquired 8.6 Million Coinbase Global shares worth $2.11 Billion. It makes up 13.66% of their stock portfolio and is their biggest holding. The investor owns 4.40% of the outstanding Coinbase Global stock. The first Coinbase Global trade was made in Q2 2021.
Who are the largest investors in Coinbase? ›
Looking at our data, we can see that the largest shareholder is the CEO Brian Armstrong with 15% of shares outstanding. With 5.9% and 4.0% of the shares outstanding respectively, The Vanguard Group, Inc. and Frederick Ehrsam are the second and third largest shareholders.
How much Coinbase does Cathie Woods own? ›
12 Cathie Wood Coinbase Global Trades
Cathie Wood acquired 4.42 Million Coinbase Global shares worth $999 Million. It makes up 8.16% of their stock portfolio and is their biggest holding. The investor owns 2.42% of the outstanding Coinbase Global stock. The first Coinbase Global trade was made in Q2 2021.
Is Coinbase a buy sell or hold? ›
Coinbase stock has received a consensus rating of buy. The average rating score is and is based on 48 buy ratings, 23 hold ratings, and 27 sell ratings. What was the 52-week low for Coinbase stock? The low in the last 52 weeks of Coinbase stock was 45.43.
Does Ark still own Coinbase? ›
Cathie Wood's Ark Invest Sells Coinbase Shares As Bitcoin Hits Yet Another All-Time New High, Buys Stock Of This Social Media Company | Markets Insider.
What is the target price for Coinbase? ›
Coinbase Global, Inc. ( COIN) Price Targets
| Average Price Target | Highest Price Target | Downside to Average Price Target |
|---|
| $208.32 | $325.00 | -7.77% |
