Cathi Wood Ark Invest Purchased 11 Million Worth Of Coinbase Stock

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Cathi Wood Ark Invest Purchased 11 Million Worth Of Coinbase Stock

Cathie Wood's Ark Invest purchased $11.2 Million Worth Of Coinbase Stock

Ark Invest, which is a famous asset investment company, has recently purchased $11.2 million worth of Coinbase shares. This purchase will add an additional 296,578 shares of the Coinbase company to Ark Invest's ETF.

COIN, which is the trading symbol for Coinbase, is at all times low due to uncertainty in the crypto market. In fact, the stock of Coinbase is already down by 84% during 2022. But despite the poor performance, Ark Invest is still one of the biggest shareholders of the US-based exchange. According to available data, Ark Invest owns a 4.3% stake in Coinbase.

According to Brian Armstrong (CEO of Coinbase), the company's revenue is expected to drop by 50% for the year. Considering the poor stock performance and a drop in revenue, it has become difficult for a crypto company to be publicly traded on the stock markets.

When we consider the timing of the purchase, it seems that Ark Invest has bought the Coinbase stock at a discount. In addition, this move will also lower the buying price of Coinbase shares for Ark Invest based on the average principle.

FTX Demise Continues To Weigh On the Markets

The market was already going through a really long bear market, and this was followed by the FTX collapse. As a result, the market sentiment on the crypto tokens and the publicly traded crypto companies has severely diminished.

A quick look at the crypto tokens reveals that most of them have already lost 70% of their value and are trading at several years' low. And the top two crypto coins (BTC & ETH) have also lost 75% of their market value since November 2021.

In short, things are tough for the crypto markets, but this recent purchase by Ark Invest will be one of the few good news for the markets.

In 2021, the revenue of Coinbase was close to $7 billion, and for 2022, the company's CEO believes that it will be around $4 billion. Considering it is one of the regulated exchanges from the USA, it has experienced a major drop in revenue.

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