Even as Coinbase’s stock price continues to fall, American investor Cathie Wood bought the cryptocurrency exchange’s shares worth around $3 million on Wednesday. Three of Wood’s funds, Ark’s Innovation, Fintech Innovation and Next Generation Internet bought a cumulative 546,579 shares totaling $2.94 million.
Low Price Scoop Up
The purchase comes at a time when Coinbase’s stock price plummeted by over 25%, following a 35% drop in revenue in the first quarter as volatile market conditions and lower crypto asset prices directly impacted its results. Its total revenue in the quarter fell to $1.17 billion from $1.80 billion in the same quarter last year.
This was not the first time Cathie Wood scooped up Coinbase shares. In April last year when Coinbase debuted in the stock market, her funds purchased a 749,205 shares. The stake was worth about $246 million at the time, at a debut day closing price of $328.28 per share.
As of writing, the cryptocurrency exchange’s stock was trading at $47.01 on Thursday. The COIN stock is down 24% in the last 24 hours, according to CoinMarketCap.
Wood’s Long Term Optimism
Cathie Wood’s funds are generally known for investments in projects involved with emerging technologies. Interestingly, Wood indicated in tweet on Wednesday that a range of new age industries, including blockchain technology, could become successful in the long term.
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Stocks sold off after the tech/telecom bubble because the “dream” would not become reality for 20-25 years. Genomic sequencing, adaptive robotics, energy storage, AI, and blockchain technology are realities, their stocks seemingly in deep value territory.
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In September last year, Wood raised eyebrows by predicting bitcoin’s price to reach more than $500,000 in five years. If companies continue to diversify their cash into something like bitcoin, institutional investors start allocating 5% of their funds into bitcoin or other crypto, then we believe that the price will be tenfold of where it is today, she explained at the time.
Earlier this year, ARK Investment’s outlook report predicted that bitcoin’s price could exceed $1 million by 2030 citing that the cryptocurrency’s global usage is still only in its early days.
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