Cathie Wood keeps her faith in Coinbase despite a high-stakes SEC showdown, staying bullish as she adds more shares to her ETFs.
Wood Doubles Down on $COIN Stock 📈
- ARK Invest’s Cathie Wood went on a Coinbase buying spree ahead of Q1 earnings report
- Added 168,869 shares on Monday, 147,137 shares on Tuesday, and 18,234 shares on Wednesday
- COIN shares spread across $ARKK, $ARKW, and $ARKF ETFs, with ARKK receiving the majority
A History of Buying the Dip 💵
- Cathie Wood previously loaded up on Coinbase shares multiple times starting in November 2022
- ARK Invest capitalized on stock slumps following SEC warnings and better-than-expected earnings
Coinbase Q1 Earnings Snapshot: A Mixed Bag 🎭
- Loss of 34 cents per share, beating analyst expectations
- Revenue of $772.53 million, a 33% decline YoY, but up 22% from Q4
- Consumer trading volume down 71% YoY; institutional trading volume cut in half
- Subscription and services revenue more than doubled to $361.7 million
- Total transaction revenue fell 63% to $374.7 million
Looking Ahead: Q2 Forecast and Goals
- Coinbase predicts around $300 million in subscription and services revenue for Q2
- Aims to reduce costs and improve adjusted EBITDA compared to full-year 2022
- Cautions of ongoing volatility amid banking concerns and regulatory uncertainty
Coinbase vs. SEC: The Ongoing Struggle
- Received Wells Notice from SEC for potential securities violations
- Coinbase filed a lawsuit against SEC in response, seeking clarity on regulation
- The exchange insists it doesn’t sell securities and remains compliant with laws
- CEO Brian Armstrong hints at a possible overseas move if regulatory clarity isn’t achieved
As the company looks to Q2 and beyond, it focuses on cost-reduction and improving its financials, while navigating the uncertain regulatory landscape.