Shares of cryptocurrency marketplace Coinbase Global (NASDAQ:COIN) jumped as much as 2.9% in trading on Wednesday as Cathie Wood bought more shares, and crypto markets recovered. Shares closed the day up 2.8%.
On Tuesday, the Ark funds run by Cathie Wood bought a total of 23,414 shares of Coinbase, worth $5.8 million. When Wood buys or sells a stock like Coinbase, her action can move the market despite the fact that she is often not moving into or out of a position entirely.
The more bullish news is that cryptocurrency markets in general have recovered nicely this week. Bitcoin (CRYPTO:BTC) is approaching $50,000 again; Ethereum (CRYPTO:ETH) is over $4,000; and a number of altcoins (cryptocurrencies other than Bitcoin) popped double digits today. Coinbase doesn’t make money on the directional movements of cryptocurrencies but rather on volume of trades, so volatility often works in the company’s favor.
Today’s move can be chalked up to volatility for a growth stock, but long term, I think the trends are still heading in the right direction for Coinbase. The company has become a go-to for millions of people transacting in cryptocurrencies, and it has grown revenue and profits like crazy over the last few years. Investors should keep an eye on those trends and growth opportunities like a non-fungible token (NFT) marketplace that’s expected soon, which could keep the stock moving higher.
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