- The U.S. SEC sued Coinbase Global for violating securities laws this week.
- Wood bought $21 million worth of Coinbase stock on consequent sell-off.
- Coinbase stock is currently up nearly 60% versus the start of the year.
Cathie Wood remains bullish as ever on Coinbase Global Inc even though it has again come in the crosshairs of the U.S. Securities and Exchange Commission.
Wood spends $21 million on Coinbase stock
On Tuesday, the SEC sued Coinbase for violating securities laws that resulted in an over 10% hit to its stock price – a sell-off that Wood saw as an opportunity to load up on 419,324 shares of the crypto exchange.
The Founder and CEO of Ark Invest spent about $21 million in total on the said purchase that was spit between three of her exchange-traded funds – Ark Innovation, Ark Next Generation Internet, and Ark Fintech Innovation.
It is noteworthy here that Wood expects Bitcoin to hit $1.3 million by the end of this decade. To that end, she’s been adding to her position in Coinbase stock this year. It is now her sixth biggest holding.
Coinbase Global’s response to the SEC
The lawsuit against Coinbase doesn’t come as much of a surprise considering it was served a “Wells Notice” earlier this year. Responding to the SEC complaint, the crypto company said:
Remember, SEC reviewed our business and allowed us to become a public company in 2021 and there’s no path to come in and register – we tried, repeatedly, so we don’t list securities.
Who also remains bullish on Coinbase stock despite the SEC’s aggressive move is HCW analyst Mike Colonnese.
He maintained his “buy” rating on the crypto exchange this morning and said its shares could climb all the way up to $77 – a rather lucrative 45% return from here.