- Cathie Wood’s Ark Next Generation Internet ETF (ARKW) bought 38,865 shares of Coinbase for $8.1 million on March 3, 2025, reflecting confidence amid a shifting regulatory landscape and Trump’s Crypto Strategic Reserve plan announced on March 2, boosting crypto prices.
Coinbase Global (COIN), the largest U.S. cryptocurrency exchange, has caught the attention of Cathie Wood, whose Ark Next Generation Internet ETF (ARKW) purchased 38,865 shares valued at $8.1 million on March 3, 2025. This investment comes amid a transformative period for the company, which reported a stellar Q4 performance on February 13, with earnings of $4.68 per share – more than doubling the consensus estimate of $1.81 – and revenue of $2.27 billion, a 138% surge from $953.7 million the previous year. For the full year of 2024, Coinbase posted total revenue of $6.6 billion, up 111% from 2023, driven by transaction revenue that soared 162% to $4 billion, alongside a net income of $2.6 billion and Adjusted EBITDA of $3.3 billion, reflecting robust growth fueled by higher crypto prices and increased adoption of its product suite.
Despite these strong financials, Coinbase’s stock has faced headwinds, currently trading 1.50% lower at $219.11, with a year-to-date decline of nearly 12% and a 31.6% drop over the past three months. This performance is closely tied to the volatility of cryptocurrency prices, which have experienced recent declines but received a boost following President Trump’s March 2 social media announcement of a Crypto Strategic Reserve plan, encompassing Bitcoin (BTC), Ether (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). The company’s shareholder letter highlights a shifting regulatory landscape as a key driver of optimism, noting that the Trump Administration’s push to position the U.S. as the global crypto capital – evidenced by its post-election rhetoric and policy momentum – marks a departure from the restrictive enforcement era that previously stifled the industry.
Coinbase’s revenue model, heavily reliant on transaction fees from its trading platform, has benefited from both market dynamics and strategic expansions like staking, custody services, and Coinbase One subscriptions. The company’s Q4 revenue exceeded analysts’ $1.88 billion forecast, underscoring its ability to capitalize on a crypto market resurgence, even as its stock struggles to reflect these gains. The $8.1 million stake from Wood’s ARKW signals confidence in Coinbase’s long-term potential, aligning with her track record of investing in disruptive technologies. Meanwhile, the broader crypto industry stands at a pivotal juncture, with global leaders increasingly prioritizing digital assets and the U.S. election amplifying crypto’s political clout. For Coinbase, the interplay of its financial strength, regulatory tailwinds, and Trump’s ambitious crypto agenda could shape its trajectory, despite the ticker’s current disconnect from its operational success.
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