Coinbase (COIN), the largest publicly traded cryptocurrency exchange, announces its Q1 results late Thursday. Coinbase stock has rocketed nearly 40% so far this year as bitcoin and ethereum led digital asset prices higher, propelled partly by renewed banking fears in March. Meanwhile, the exchange faces off against the SEC as it fights for regulatory clarity in the wake of cryptocurrency crackdowns. But that hasn’t stopped ARK Invest CEO Cathie Wood from continuing to load up on COIN stock.
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Cathie Wood Loads Up On COIN Stock
Wood was a Coinbase stock buyer this week, adding substantially to her funds’ positions ahead of earnings, according to ARK Invest’s daily trade updates.
Wood bought 168,869 shares of COIN stock Monday worth $8.46 million based on Monday’s closing price of 50.14. She followed that up by adding 147,137 shares on Tuesday worth $7.55 million, based on the 51.32 closing price. On Wednesday, ARK bought 18,234 shares worth $884,166 based on COIN’s 48.49 closing price.
The Coinbase shares were distributed among the Ark Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW) and the Ark Fintech Innovation ETF (ARKF). Notably, most of the shares were added to ARKK, similar to previous buying sprees.
Wood is no stranger to buying the dip on Coinbase. In late March, ARK added nearly $18 million in shares of Coinbase after the stock slumped following a warning from the SEC. Also, Wood added $13 million worth of shares in late February after Coinbase edged out earnings forecasts.
Cryptocurrency Outlook Picks Up Amid Bank Crisis. The Markets Lifting Bitcoin Price Might Surprise You
Coinbase Earnings
Expectations: FactSet analysts expect Coinbase to report a loss of $1.45 per share, compared with a loss of $1.98 last year. Wall Street forecasts the company’s adjusted loss to widen to 39 cents per share from 25 cents in 2022. FactSet sees revenue diving 43% to $655 million.
Institutional and retail trading volume is expected to take a hit. Analysts guide the number of verified users increasing to 111.9 million from 109.1 million at year-end.
Coinbase, SEC Standoff
Coinbase received a Wells Notice from the Securities and Exchange Commission on March 23, a warning the regulator intends to recommend enforcement action for potential securities violations against some of its exchange products.
The company responded with a lawsuit against the SEC on April 24. Coinbase requested the regulator publicly share its decision on a July 2022 petition about whether it would allow the crypto industry to be regulated using existing frameworks.
The exchange remains adamant that it does not sell securities, and maintains compliance with all applicable laws. And Coinbase says its business model and process for listing cryptocurrencies haven’t changed since regulators approved the company to go public.
In its initial response, Coinbase said the SEC failed to respond to multiple requests for clarification.
On April 18, CEO Brian Armstrong floated the possibility of Coinbase moving overseas if regulators fail to establish a clear regulatory framework.
Coinbase Stock
COIN stock climbed 2.2% Thursday ahead of results. Coinbase stock dropped 5.5% Wednesday. Shares have tumbled 33% over the past three months as the SEC ramped up its crackdown on the industry in the wake of the FTX collapse. Still, Coinbase stock is up 39% this year as the crypto winter shows signs of thawing.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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Source: https://www.investors.com/news/coinbase-stock-cathie-wood-adds-15-million-dollars-in-coin-shares-with-earnings-due/?src=A00220&yptr=yahoo