With the U.S Securities and Exchange Commission (SEC) probing Coinbase over allegedly allowing US customers to trade tokens that should have been registered as securities, company stock prices have taken a huge hit and plunged more than 20% since the news came out.
On Tuesday, Coinbase COIN stock closed with a loss of 21.08% at $52.93.
COIN shares have been performing poorly since its initial public offering last year April. With an initial reference price $250, COIN opened at $381, ending opening day at $342.00. From the very first get go, incline continued to set on, and share price dropped under $200 in mid-January of 2022, falling below the $100 mark in May when its horrifying Q1 results got released, incurring net losses of $430 million that period. Shortly after, COIN went down even further, trading hands at around $50 from June onwards. A little uptick to above $70 got offset by the latest news of the cryptocurrency exchange being under investigation.
ARK Invest Dumping Coinbase Stock
COIN’s poor performance does not go without consequences. In its daily trading update email on Wednesday, Cathie Wood’s Investment Management said that three of its exchange traded funds (ETF) sold a total of more than 1.4 million shares on Tuesday.
- ARK Innovation ETF (AARK) sold 1,133,495 COIN shares, which was6833% of the fund’s total investments.
- ARK Next Generation Internet ETF (ARKW) sold 174,611 COIN shares, representing 0.6768% of this fund’s total investments.
- ARK Fintech Innovation ETF (ARKF) sold 110,218 COIN shares, or 0.6793% of its total holdings.
In a recent statement, Coinbase CEO Brian Armstrong said that the rapid growth of his cryptocurrency exchange in the past years, has brought some unwanted challenges along.
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Source: Igaming
