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HomeNewsBitcoin Bull Cathie Wood Buys More Coinbase Shares for $21M as the...

Bitcoin Bull Cathie Wood Buys More Coinbase Shares for $21M as the Price Drops: Why This Can Be a Good Decision for Investors to Follow

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    • Cathie Wood’s ARK Invest continues to reinforce its position in Coinbase (COIN), regardless of a turbulent crypto environment and a pending SEC lawsuit against the exchange.
    • A recent purchase of $21 million worth of Coinbase shares exemplifies ARK Invest’s commitment to the crypto market amid industry-wide challenges and uncertainty.

In an assertive move showcasing unwavering belief in cryptocurrency’s promise, investment management firm ARK Invest, spearheaded by Cathie Wood, recently intensified its investment in Coinbase (COIN). This development comes amidst the company’s stock value depreciation, catalyzed by the United States Securities and Exchange Commission (SEC) announcing a lawsuit against the cryptocurrency exchange over alleged securities law violations.

Despite a challenging atmosphere in the crypto arena — marked by volatile market conditions, increased regulatory oversight in the US, and bankruptcy within the industry — ARK Invest has upheld its purchasing spree for Coinbase. As the fourth-largest shareholder of Coinbase, the firm has demonstrated a consistent commitment to this position since the previous year.

CoinGape reported on June 6th that ARK Invest had bought a total of 419,324 Coinbase shares for approximately $21 million, capitalizing on the opportunity as COIN’s price slipped below $50. Among ARK Invest’s portfolio, the purchases were distributed across the ARK Innovation ETF (ARKK) with 329,773 COIN shares, the ARK Next Generation Internet ETF (ARKW) with 53,885 shares, and the ARK Fintech Innovation ETF (ARKF) with 35,666 shares.

ARK Invest’s Coinbase share collection started last year and, as of March 31, it held over 12 million COIN shares. Wood, a well-known Bitcoin optimist, has sustained her bold prediction of Bitcoin reaching a price of $1 million by 2030.

Earlier this week, the SEC filed charges against Coinbase, accusing the exchange of operating as an unregistered securities exchange, broker, and clearing agency. Additionally, Coinbase received inquiries from state securities regulators in several states, including California, Alabama, and New Jersey. The SEC lawsuit claims that several tokens, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO, are classified as securities.

Coinbase was not the only company under scrutiny. Binance, along with its U.S. division Binance.US and CEO Changpeng “CZ” Zhao, faced a lawsuit filed by the SEC on Monday. The charges comprised of operating unregistered securities exchanges, deceptive investor practices, and selling unregistered securities, amounting to 13 charges in total.

Following the SEC lawsuit’s announcement, Coinbase’s stock price fell sharply by 21% to $46 on Tuesday. Nonetheless, investor purchases, including those by ARK Invest, during this dip stimulated a recovery, leading to a nearly 3% price increase. Following the market closure, the upward trend persisted, with COIN currently trading at $52.75, showing a 2% rise.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628
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