Coinbase (NASDAQ: COIN) stock price came crashing down by 16.7% on Friday on weak Q2 numbers as investor sentiment fades. However, Cathie Wood’s Ark Invest sees this as a buy-the-dips opportunity, scooping over 95K COIN stocks, worth more than $29 million. Following yesterday’s fall, the stock’s monthly gains have turned negative.
Cathie Wood’s Ark Invest Buys During COIN Stock Crash
The Coinbase stock has come under selling pressure following disappointing Q2. Despite the 16% crash on Friday, Ark Invest purchased nearly 95K shares across three portfolio funds – ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF).
The COIN share price has come under selling pressure in the last two weeks, reversing from the highs of $420 in mid-July. Since then, the COIN stock has corrected by 25% closing at $314 levels after Friday’s trading session. Note that Cathie Wood was offloading her COIN holdings during the highs in mid-July.
After the strong correction, Ark Invest finds a buying opportunity once again. This comes as part of the asset manager’s portfolio re-adjustment. As of now, Coinbase (COIN) remains the second-largest holding in Ark Invest portfolio after Tesla.
Coinbase Q2 Earnings Rattles Investors
Coinbase Q2 earnings disappointed the Street, as the crypto exchange reported a total revenue of $1.5 billion, down 26% from the previous quarter. Transaction revenue saw the steepest decline, falling 39% quarter-over-quarter to $764 million due to reduced market volatility. Subscription and services revenue also dipped 6%, totaling $656 million for the quarter. This was enough to send the COIN stock crashing down.
On the other hand, Coinbase rival Robinhood saw 45% surge in Q2 revenue this week. Looking into the finer details, Coinbase’s Q2 report shows some improvement as well. Coinbase’s stablecoin revenue rose 12% quarter-over-quarter to $332 million, driven by average USDC balances reaching $13.8 billion across its products. The company expects this momentum to continue, citing USDC’s record-high market cap in July.
In the latest development, Coinbase plans to introduce trading for tokenized stocks and prediction markets on its platform for U.S. customers. With this move, the crypto aims to evolve into a comprehensive financial markets exchange powered by blockchain technology.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
✓ Share: