• The U.S. SEC recently sued Coinbase Global for violating securities laws, leading to a sell-off of the stock.
• Cathie Wood, Founder and CEO of Ark Invest, took advantage of the drop by buying $21 million worth of Coinbase stock.
• Despite the legal issues, HCW analyst Mike Colonnese is still bullish on Coinbase with his “buy” rating and a potential return of 45%.
SEC Sues Coinbase
The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Coinbase Global for violating securities laws which caused an over 10% drop in their stock price.
Cathie Wood’s Investment
Cathie Wood, Founder and CEO of Ark Invest, took advantage of this opportunity and purchased 419,324 shares totaling to $21 million worth of Coinbase stock split among three exchange-traded funds: Ark Innovation, Ark Next Generation Internet and Ark Fintech Innovation Funds. Even with all these legal issues going on around it, she remains bullish about it as she expects Bitcoin to reach $1.3 million by the end of this decade.
In response to the lawsuit filed against them by the SEC, Coinbase said that they had already tried repeatedly to register with them but there was no path available for them to do so when they applied last year which allowed them to become a public company in 2021.
HCW Analyst’s View
HWC analyst Mike Colonnese is also remaining bullish on Coinbase despite the SEC’s aggressive move as he maintained his “buy” rating on the crypto exchange this morning and said its shares could climb all the way up to $77 – a rather lucrative 45% return from here.
Despite all these legal issues surrounding Coinbase right now due to violation of securities laws by SEC, Cathie Wood is still very optimistic about it due to her expectations from Bitcoin while HWC analyst Mike Colonnese has maintained his “Buy” rating even though he believes that there is potential for returns up till 45%.