Shares of Coinbase (COIN) Sink to All-Time Low, Cathie Wood Buys

UTC by Bhushan Akolkar · 3 min read
Shares of Coinbase (COIN) Sink to All-Time Low, Cathie Wood Buys
Photo: Depositphotos

On Monday, as the Coinbase (COIN) stock touched its new all-time low, Ark Investment added an additional $56 million worth of stocks.

The contagion of the massive FTX collapse spread to the crypto market and other crypto businesses. On Monday, November 21, the share price of Coinbase Global Inc (NASDAQ: COIN) tanked to an all-time low after dropping another 9%.

The COIN stock has faced a massive hammering on Wall Street with its price tanking more than 90% over the last year. Monday’s correction in COIN stock comes as the Bitcoin price slumps slipping under $16,000 levels.

In nineteen months of going public, the Coinbase market cap has dropped from $85 billion all the way to less than $10 billion now. The day the company went public on Nasdaq last year in April 2021, the COIN stock surged past $400. It was also the highest point that the COIN stock was trading.

Amid the FTX collapse, crypto exchange Coinbase and other trading platforms have been facing high trading activity. Also, users’ trust in centralized trading platforms has dropped to a new low and thus they have been opting for self-custody. In a note on Friday, Mizuho analysts said that the daily trading volumes are 30% to 40% below their average for the year. Speaking on the development, Oanda senior market analyst Edward Moya said:

“Coinbase shares can’t catch a break. The major cryptocurrency exchange has yet to convince investors that its share price will stabilize like some of the other top cryptos as investor skepticism about trading on exchanges grows.”

After the collapse of the crypto exchange FTX, the bonds issued by Coinbase have also dipped this month. The value of Coinbase’s bonds dropped 15% this month and trading at a record low of 50 cents to a dollar.

“Coinbase has a small exposure to FTX, but most of the recent weakness is stemming from concerns many crypto traders might be opting for cold storage instead of keeping money on exchanges,” Moya said.

Cathie Wood Buys Coinbase Stock amid Its Fall to All-Time Low

While Wall Street’s conviction in the Coinbase (COIN) stock has dropped significantly, Wood’s Ark Investment Management funds have snapped up more than 1.3 million shares of Coinbase so far this month On Monday, Ark Invest purchased another $56 million worth of COIN stock.

Besides, the recent purchase has also boosted Ark’s total holdings by roughly 19% to about 8.4 million shares. The majority of Ark’s COIN stock holding is through its flagship ARK Innovation ETF which has nearly 6 million shares. Additionally, the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF each only hold just over 1 million shares.

In addition to the COIN Stock, Ark Investments is also purchasing shares of Grayscale Bitcoin Trust (GBTC) and Silvergate Capital.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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