{"id":417318,"date":"2023-07-10T16:25:29","date_gmt":"2023-07-10T16:25:29","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=417318"},"modified":"2023-07-10T16:27:51","modified_gmt":"2023-07-10T16:27:51","slug":"coinbase-stock-adds-50-to-its-value-following-the-secs-legal-action","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/coinbase-stock-adds-50-to-its-value-following-the-secs-legal-action","title":{"rendered":"Coinbase Stock Adds 50% to Its Value Following the SEC\u2019s Legal Action"},"content":{"rendered":"

Over the course of the last several weeks, the crypto industry has been obsessing over multiple Bitcoin ETF filings that various companies approached the US SEC with.<\/p>\n

However, just before the demand for ETFs skyrocketed, the US SEC filed a lawsuit against Coinbase<\/a> and Binance<\/a>.<\/p>\n

Typically, when one of the US’ top regulators files a lawsuit against a company, its shareholders tend to dump shares, which causes their value to crash.<\/p>\n

However, due to the overwhelming criticism that the SEC has received for cracking down on the crypto industry, this is not what happened with Coinbase.<\/p>\n

On the contrary, the US-based crypto exchange has added over 50% to its stock value since the lawsuit was filed against the firm.<\/p>\n

TradingView data shows Coinbase shares went from $52 on June 6 to $78.7 on July 7th. The total growth represents a 51% increase. Not only that, but the stock also increased by around 133% in the last six months. Meanwhile, its year-over-year growth is around 50%.<\/p>\n

Coinbase shareholders sold over 88,000 shares since the lawsuit<\/h2>\n

It is worth noting that some of the exchange’s major stockholders<\/a> did sell some of their shares. It is uncertain whether they sold them in order to profit from the increasing price or because they expected the price to crash after a momentary surge.<\/p>\n

On July 6, several of Coinbase’s executives, including the CEO, Brian Armstrong, sold 88,058 shares. In exchange, the shareholders got around $6.9 million.<\/p>\n

The official filing<\/a> with the US SEC shows that the transactions included a 4,580 sale by Gokul Rajaram, one of Coinbase’s board members, as well as a 1,818 sale by Paul Grewal, the exchange’s Chief Legal Officer.<\/p>\n

Jennifer Jones, the platform’s Chief Accounting Officer, also sold 7,335 shares. Jones later sold another 74,375 shares<\/a> on June 29th, after the price had already grown considerably, netting around $5.2 million in exchange.<\/p>\n

ARK Invest buys more Coinbase shares<\/h2>\n

Although some of the major shareholders started selling massive shares, there were also those who decided to wait and see what would happen. Cathie Wood’s investment company,<\/p>\n

ARK Invest<\/a> was among those who did not sell any of their holdings. In early June, the company purchased 400,000 shares<\/a> belonging to the US-based crypto exchange.<\/p>\n

Wood claimed that Coinbase would see an increase in share price once Bitcoin started another bull run, and ARK’s actions confirmed the strength of this belief.<\/p>\n

A few weeks earlier, on June 19th, ARK Invest CEO reiterated her confidence that Bitcoin would be worth $1 million per coin someday.<\/p>\n

Related<\/h3>\n