Intel makes a small bet on the future of the cryptocurrency market with an investment in leading exchange Coinbase.
Semiconductor producer Intel disclosed to the SEC that it holds nearly $800,000 value of Coinbase stock. Coinbase went public via direct listing in April. The firm reported record Q2 profits this week.
Intel, the computer processor giant and world’s largest semiconductor manufacturer, disclosed to the U.S. Securities and Exchange Commission (SEC) at this time that it has purchased 3,014 shares in cryptocurrency exchange Coinbase, which went public in April.
The shares are worth about $787,000 as of this writing, based on the present Coinbase (COIN) stock price of $261.25 per share. Intel’s disclosure notes that the shares have been bought earlier than the end of June.
Barron’s reviews that Intel may have acquired the shares before Coinbase’s direct listing began in April, however, since the stake in the crypto change is so small (by corporate standards), it’s well under the 5% threshold that would require Coinbase to report it when going public. Intel disclosed the investment to the SEC as it holds more than $100 million in total investments as a public company.
Intel’s investment in Coinbase is an apparent bet on the way forward for the cryptocurrency market because the exchange’s fortunes are likely to fall according to those of the crypto market. Coinbase went public in April when the market was hovering to all-time heights, however the inventory worth sank effectively under the original $250 reference price when Bitcoin, Ethereum, and other top coins tanked in mid-May.
With the crypto market back on an upswing in recent weeks, Coinbase’s inventory price is likewise on the rise. It traded at a recent low of just above $220 per share as of July 19, but is worth nearly 19% more as of the shut of enterprise at this time. Even so, Coinbase’s inventory worth remains to be effectively under the opening day excessive of practically $430, when traders have been in a feeding frenzy.
Cathie Wooden’s ARK Make investments is the single largest institutional proprietor of Coinbase shares because the exchange went public. In response to CNN, ARK Funding Administration owns more than 5.6 million shares in Coinbase at a present value of more than $1.3 billion. It’s ARK Innovation ETF owns another chunk of shares, nearly 4.26 million of them, which are value simply over $1 billion as of this writing.
Coinbase’s stock briefly popped above $290 per share this week when the agency reported record earnings for Q2, notching simply over $1.6 billion in profit—almost double its Q1 mark. Coinbase’s monthly transacting users (MTU) grew 44% from Q1 to Q2 to 8.8 million, and the agency now has 68 million verified users on the platform.