Cathie Woods Ark Invest has consistently accumulated shares of cryptocurrency exchanges Coinbase Global, Inc. (NASDAQ:COIN) ever since it went public in April 2021.
What happened: Despite the volatility this year, Wood’s exchange-traded funds continued to bulk up on stocks. No later than Friday, the Ark Innovation ETF (NYSE:ARKK) and Ark Next Generation Internet ETF (NYSE:ARKW) purchased a total of 119,543 shares of Coinbase, valued at $7.7 million.
Since the start of the year, Ark through its ETFs has bought around 1.2 million shares in Coinbase. With an average price for the year of around $57, the purchase is valued at $68.4 million.
Ark’s current positions in Coinbase are as follows:
- ARKK – 6.51 million shares and 5.61% weight
- ARKW – 1.44 million shares and 7.48% weight
- See also: How to buy Coinbase shares
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Is Coinbase a buy: Coinbase has seen uneven trading in the year-to-date period, despite the broadly positive sentiment prevailing in the broader market. After the cryptocurrency exchange’s shares staged a recovery at the beginning of the year, concerns about the betting ban weighed down in early February.
Since then, Coinbase stock has seen a series of consolidations.
The average analyst price target for Coinbase is $59.79, suggesting a little over 7% downside from today’s levels.
Coinbase’s fortunes are largely tied to cryptocurrencies, and any decline in cryptos could also be negative for the exchange. Following the release of Coinbase’s fourth-quarter results, Raymond James analyst Patrick O’Shaughnessy pointed to risks stemming from the potential for significant regulatory action and significant price compression.
However, Needham’s John Todaro sees Coinbase as an attractive way to play the growing cryptoasset universe, which includes overlap in the high-growth areas of stablecoins, De-Fi, NFTs, lending/lending applications and yield farming.
Needham has a Buy rating and $73 price target on Coinbase, while Raymond James rates it as an Underperform.
Coinbase ended Friday’s session at $64.51, up 1.27%, according to Benzinga Pro data.
Read next: Coinbase Q4 results and guidance ‘encouraging’, but regulatory risks remain: Why analysts are mixed on ratings, price targets
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