Does Coinbase Deserve a Place in Your Portfolio? By StockNews

Among other contributing factors, crypto economy-based financial technology company Coinbase’s (COIN) shares have soared in price over the past few months on bitcoin’s price advance. But can the stock continue to gain even in the face of an ongoing investigation into the company? Read on to learn more. Coinbase Global , Inc. (NASDAQ:), which is a San Francisco-based concern, provides financial infrastructure and technology for the crypto sector. The company made its stock market debut on April 14, 2021, at a nearly $100 billion valuation. On the first day of trading, its shares soared in price to hit their 52-week high of $429.54, due partly to investor optimism because Cathie Wood bought approximately $245.90 million of its shares.

The stock has gained 24.4% in price over the past month to close Friday’s trading session at $300.84. However, it is currently trading 30% below its 52-week high.

This month, COIN became the custody partner of Facebook, Inc.’s (NASDAQ:) new digital wallet, Novi. It also announced Coinbase NFT on October 12, a peer-to-peer marketplace that is expected to make minting, purchasing, showcasing, and discovering NFTs easier than ever. In addition, bitcoin’s sky-high prices have helped COIN gain. However, the company’s director, Frederick Ernest Ehrsam III, sold 87,649 shares. In addition, this month, Cathie Wood’s Ark Invest completed the sale of 98,427 shares of COIN. Investigations into the company are also ongoing on alleged violations of securities laws. So, its near-term prospects look uncertain.

Continue reading on StockNews