Top US crypto exchange Coinbase (COIN) is seeing its stock rise in the aftermath of the FTX Exchange collapse.
Coinbase’s shares opened at $47.53 and fell to $46.25, but after news broke that FTX had filed for bankruptcy, the stock shot up to $56.68, an increase of more than 22%.
[adinserter block="1"]At time of writing, COIN is trading hands at $56.22.
Cathie Woods’ ARK Investment Management exchange-traded funds (ETF) purchased 237,675 shares of Coinbase’s stock on Wednesday when COIN was trading for under $50 and had dipped to as low as $45.61 per share.
Coinbase’s stock has declined in recent months due to overall market pressure. In September, analysts from banking giant JPMorgan lowered their price target of Coinbase’s stock by 23% from $78 to $60, which at the time was below its $61.88 price.
While Coinbase is currently experiencing a stock price surge, it is nowhere near its all-time high of $426 in November 2021.
In an interview this week with CNBC, Coinbase’s head Brian Armstrong assured customers and investors their crypto exchange had sound financials and would not face liquidity issues like FTX.
“So for Coinbase this is a non-issue and the reason is that we hold customer funds one-to-one backed. And you don’t have to take our word for it. We are a public company and so we publish audited financial statements by a Big Four accounting firm. And when we went public in the United States we filed and registered an S-1 with the SEC and we explained to them exactly how our business works. We showed them our audited financials and they approved us as a company to go public.”
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