Insider Trading Report: Coinbase (COIN)

ARK Fintech Innovation ETF, a fund with major holdings in the cryptocurrency space, bought shares of Coinbase (COIN) in late June. Buying nearly 82,000 shares, the fund paid out nearly $20.3 million for the shares. A related entity bought $53 million in shares the week before.

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  • Since the company went public in April, insiders at the firm, including directors and major holders, have been sellers of shares.

    The company went public at an official price around $350, rallied to nearly $430 on its first day of trading, then slid to the low $200 range. It’s now around $240.

    The cryptocurrency brokerage firm went public at a profitable moment, with earnings up over 2,300 percent and revenue up over 840 percent in the last year thanks to a boom in cryptocurrencies.

    The recent rise in shares the past few weeks, even as cryptocurrencies have been in a bear market and rangebound, suggests that the company is likely to keep performing well as it collects fees from investors buying the dip in cryptos.

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  • Action to take: The company’s shares look like they’re stabilizing here, but could start to rally later in the year if cryptocurrency prices start to take off again.

    The January $300 calls, last going for about $20.50, look like a less expensive way to play a rebound in the share price in the second half of the year. A return to the company’s old highs could lead to sizeable gains, and such a move could happen in a renewed crypto bull market.

     

    Disclosure: The author of this article has a position in the company mentioned here, and may make additional trades after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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