Cathie Wood Buys $31.5M Coinbase Stock Amid Market Sell-Off

Cathie Wood, the founder and CEO of ARK Invest, has recently acquired approximately $30 million worth of Coinbase Global Inc. (COIN) stock over the past three trading sessions. This purchase comes amidst a market sell-off driven by escalating tariff tensions, which has led to a broader market downturn and increased volatility in high-risk assets.

ARK Invest's daily trading disclosures reveal that the firm purchased 83,157 shares on Friday, followed by 84,514 shares on Monday, and an additional 31,730 shares on Tuesday. Based on last week’s closing prices, the total investment amounts to about $31.5 million. As of Tuesday’s close, the value of these shares is closer to $29.3 million.

Coinbase, a leading cryptocurrency exchange, has not been immune to the market storm. Shares closed at $151.47 on April 8, down from $157.28 the previous day. The company's Q1 earnings are scheduled for release on May 1, and analysts have slightly trimmed their forecasts, reducing the expected EPS from $2.18 to $2.17. This dip in stock value follows a broader slide across crypto-related equities, with Bitcoin down around 8% week-over-week, and the Nasdaq and S&P 500 still sitting more than 10% lower since the tariff announcements.

Cathie Wood has long been a vocal advocate for the potential of cryptocurrencies. She has publicly predicted that Bitcoin could reach $1 million by 2030 and has urged institutions to consider crypto as a serious asset class. Wood believes that crypto offers asymmetric upside and sees it as a necessary hedge in a changing macroeconomic world. Her investments in Coinbase are not merely tactical but are part of a broader belief in the infrastructure of digital assets.

ARK Invest's latest move signals confidence in Coinbase's long-term position, despite the current market volatility and regulatory uncertainty. Coinbase scored a significant win in February when the SEC moved to drop its lawsuit against the company, which could ease pressure as Q1 earnings are released. This dip in the market may be uncomfortable, but it is not discouraging all investors. Wood's continued buying spree indicates her unwavering belief in the company's future prospects.

Many analysts still believe that Coinbase has strong potential. Overall, analysts rate COIN stock a Moderate Buy, with an average price target of $300.10, implying over 98% upside from current levels. This optimism, coupled with Wood's investment, suggests that despite the current market conditions, there is significant confidence in Coinbase's long-term growth potential.