This week, the U.S. SEC sued Coinbase Global Inc. for violating securities law. Despite the SEC’s aggressive move, Cathie Wood, founder and CEO of Ark Invest, took the opportunity to purchase $21 million worth of Coinbase stocks.
Since the beginning of the year, Coinbase stocks have been up by nearly 60%. Wood seized the opportunity to purchase 419,324 shares on the crypto exchange, split between three of her exchange-traded funds – Ark Innovation, Ark Next Generation Internet, and Ark Fintech Innovation.
According to the SEC complaint, Coinbase responded to the lawsuit by saying that the SEC reviewed their business and allowed them to become a public company in 2021, and there is no path to register.
HCW analyst Mike Colonnese is still bullish on Coinbase stock, maintaining his “buy” rating on the crypto exchange and saying its shares could climb up to $77 – a 45% return from here.
