Coinbase’s share price has dropped 87.04%, to $34.97.
Cathie Wood bought 297,000 shares of Coinbase Stock for $11.9 million last week.
Despite the general decline in tech equities this year (2022), Coinbase stands out as a publicly listed firm whose major business is cryptocurrency. Other businesses in this exclusive group include Block Inc. (previously Square) and crypto mining companies Core Scientific and Riot Blockchain. Coinbase’s share price has dropped 87.04%, to $34.97, from its all-time high of $268.15 on December 21, 2020, as per MarketWatch.
However, Cathie Wood, Chief Investment Officer and Portfolio Manager at Ark Invest acquired additional 297,000 shares of Coinbase Stock for $11.9 million last week despite the price of COIN being down. Currently, the investment fund has a stake in Coinbase of 6,139,480 shares worth $246.7 million.
Recession and Prolonged Crypto Winter
Coinbase put a stop to accepting new employees in June and subsequently stopped extending employment offers. The crypto bear market continued its stranglehold on the sector throughout July, prompting Coinbase to lay off 1,100 workers, or 18% of its personnel.
According to a business blog post published at the time, Coinbase CEO Brian Armstrong cited the possibility of a recession and the current state of the economy as reasons for the layoffs.
Core Scientific, a publicly listed business that specializes in Bitcoin mining, has also seen its stock price plunge this year. CORZ shares, the company’s primary trading security, opened the year at $10.06. The shares dropped 97% to $0.22 on December 1, 2022. As per the latest reports the company is filing for Chapter 11 Bankruptcy. Falling prices of cryptocurrencies bundled with the recent FTX fiasco have brought a hard time on crypto firms.