Despite the fact that Coinbase’s share price has plummeted by almost 85% from its peak of $348.98 on November 12, 2021, Cathy Wood, the CEO and founder of Arch Invest, remains optimistic about the company.
According to media reports, Arc Invest purchased COIN shares worth $9.2 million on Friday, marking its fourth investment since November and third within the past two months.
According to a Bloomberg report from three months ago, Arc Invest generated an impressive $56 million worth of Coinbase shares during November 2022.
Ark Invest Coin Purchase
During the most recent round, the investment firm acquired a total of 162,325 shares of COIN. In the preceding two rounds, specifically on January 5 and January 12, the company amassed Coinbase shares valued at $5.8 million and $3.3 million, respectively. Moreover, in December, the firm purchased COIN shares amounting to $11.9 million.
Arc Invest made its first significant acquisition of COIN shares this year on January 5. On that day, the stock closed with an 11% decrease, reaching $33.53. The following day, January 6, it hit an unprecedented low of $31.95, indicating Ark’s presence. The timing of this investment was impeccable, as COIN shares were purchased at $43.79 per share on January 12. This purchase aligned perfectly with the recovery trajectory of major crypto assets, primarily led by BTC.
In the beginning of this month, ARK Invest provided a BTC price forecast for 2030, estimating $258,500, $682,800, and $1.48 million for bear market, base rate, and bull market scenarios, respectively.
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Coinbase shares, which had surged by almost 95% in a month and reached $81 on Feb. 2, are now experiencing a notable decline. This downward trend has been further exacerbated by the recent SEC actions against Kraken, labeling it as an unregistered securities staking service.
Coinbase, a prominent player in staking services, has recently been asserting that its products are not securities. The CEO, Brain Armstrong, along with other executives, has been actively emphasizing this point. On Thursday, COIN closed at $59.63, experiencing a 14.13% decline, following Kraken’s announcement of the launch of its staking services for US investors at $68.51%. By the end of the week, COIN had suffered an overall decrease of approximately 22%.
Impact of the Recession on Coinbase
Coinbase has downsized its workforce to under 2,000 employees since June 2022 due to the impact of the market downturn. The initial round of layoffs took place in June, resulting in a reduction of 18% or 1,100 employees. Additionally, on January 10, a further 20% or 950 workers were laid off.
Coinbase has been fined $3.6 million by De Nederlandse Bank (DNB), the central bank of the Netherlands, for not registering its services in the country from November 2020 to August 2022, as reported on January 26.
On April 14, 2021, Coinbase shares made their debut on Nasdaq, being listed at $250. By the end of the opening day, COIN had surged to more than $328, reflecting an impressive gain of over 31%. However, presently, the stock is experiencing a decline of approximately 85% from its peak value of $348.98.
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source: cryptopotato.com
