Cathie Wood, the founder and CEO of Ark Invest, has continued to be bullish on Coinbase despite its share price being down by nearly 85% from its all-time high of $348.98 on November 12, 2021. Ark Invest has made four investments in Coinbase since November, with the latest being a purchase of $9.2 million worth of COIN shares on Friday. The purchase was made at a time when all major crypto assets were on a recovery path.
However, Coinbase shares have been on a downward spiral since February 2, when it rose to $81, due to the SEC crackdown on Kraken for offering “unregistered securities” in the form of staking services. Coinbase is a major player in staking services, and its CEO, Brain Armstrong, and other executives have been stressing that the products are not securities. Coinbase shares have closed the week roughly 22% down.
Due to the market downturn, Coinbase has had to reduce its headcount by over 2,000 since June 2022. Additionally, the central bank of the Netherlands, De Nederlandsche Bank, has reportedly fined Coinbase $3.6 million for failing to register its services in the country between November 2020 and August 2022.
Coinbase’s shares were listed on Nasdaq on April 14, 2021, and were priced at $250. However, the stocks are now trading nearly 85% below their all time high of $348.98. Despite this, Cathie Wood and Ark Invest remain bullish on Coinbase, and have continued to make investments in the company.