Despite a difficult week for the largest bitcoin exchange in the United States, Coinbase stock shares finished today up almost 9 percent. The stock ended the day’s trading at $58.50, a gain of 8.9 percent in 24 hours.
Yesterday, Coinbase stock, which trades on the NASDAQ as COIN, ended at $53.72.
A little rebound
However, today COIN rebounded. Why? It may have something to do with Ark Invest, the investment group run by Cathie Wood, purchasing 546,576 Coinbase shares for $2.9 million on Wednesday.
Wood, a Bitcoin supporter, said yesterday that now is an excellent moment to invest in innovative technology. She said on Twitter that equities connected to new technologies like blockchain are in “deep value area.”
However, since the business went public last year, Coinbase stock has performed poorly. Last year, the exchange’s stock reached a high of $381. They’re down 84 percent at today’s closing price.
Bad news for the market
COIN has faced some bad news one after the other. For one, the San Francisco-based exchange reported a quarterly loss of $430 million and first-quarter sales of $1.17 billion.
It made $2.5 billion in Q4 2021, compared to experts’ expectations of $1.5 billion in Q1 2022. Not only that, but monthly transactional users (those who use the exchange to purchase and sell digital assets) fell sharply from 11.4 million in the previous quarter to 9.2 million in the first.
Coinbase stock was all over the place today, dipping as low as $41.85 at one time, or 40% below its closing price. Altcoins, unlike equities, exhibit this kind of volatility.
Coinbase and COIN are experiencing difficulties at a time when the cryptocurrency industry as a whole is faltering. Bitcoin, the most valuable digital currency by market capitalization, has reached lows not seen before 2020. According to several commentators, Bitcoin is following the equity market’s decline as investors migrate away from riskier assets.
However, Brain Armstrong, the brilliant CEO of Coinbase, is unfazed. Short-term drops, he said on Twitter yesterday, might “give fire sale pricing on the world’s finest firms,” citing venture investor Fred Wilson.