Cathie Wood has amassed a 1bn position in coinbase built up over the past two months. The CEO and founder of investment management firm, Ark Invest, has been buying the Coinbase dips over the months of May and June, capitalising on the market volatility that cryptocurrency has experienced recently.
The day following the Coinbase listing on the Nasdaq in April, COIN stock was selling at $430 before settling at $310 per share. At the time of writing Coinbase is selling at $215, a significant drop from it's all-time-high. Particularly savvy investors have used the dips to buy, rather than sell. Investors such as Ark invest seem to be attracted to the long-term investment opportunity that Coinbase, and perhaps the value that cryptocurrency in general, offers.
Ark Invest CEO Cathie Wood has shown herself to be a bitcoin bull, reaffirming her Bitcoin price prediction in May stating that she still sees the price of Bitcoin reaching $500K. Her comments on the environmental impact of Bitcoin and her belief that regulation will become crypto-friendly as the innovation in the sector becomes increasingly apparent.
On the environmental impact of crypto, Wood has stated the following:
“This auditing of what miners, certainly in North America, are willing to do around how much of their electricity usage is generated by renewables is going to bring that topic into stark relief, and will encourage an acceleration in the adoption of renewables beyond which otherwise would have taken the place.”
Where many have concerns over the decline of Coinbase stock, Wood’s approach has been to gradually add shares, buying when the price of COIN stock dips, with ARK acquiring a large percentage of its Coinbase stock in April and May.
Coinbase's institutional trading volumes were about 80% higher than retail trading volumes in their first quarter. With a growing institutional footprint, it is no surprise that eagle-eyes investors and management firms are continuing to buy stock. While volatility may be the buzz-work of crypto, this may be a positive attribute rather than a downside for investment firms who look at cryptocurrency as a long term investment.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.