Coinbase Shares Rise 7% Despite Hiring Pause

June 06, 2022

Coinbase Global, Inc. (COIN) increased 7% in early trading on Monday in response to strong cryptocurrency growth over the weekend, in contrast to the stock's drop in price at the end of last week. At midday, it was still up nearly 5.3%.  

A total of 107 U.S.-listed ETFs hold 10.3 million shares of COIN. The ETF with the most exposure to the stock is the First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT), which has a weighting of 12.68% to the company.  

 

 

Of the 10.3 million shares of COIN held in ETFs, the ARK Innovation ETF (ARKK)  leads the pack, with 4.57 million shares, 44% of the shares held by all U.S.-listed ETFs. Interestingly, beyond ARKK, another two ETFs issued by ARK are among the top five ETFs in terms of number of shares held in COIN. The ARK Next Generation Internet ETF (ARKW), holds 1.2 million shares, while the ARK Fintech Innovation ETF (ARKF), which also has the fourth largest allocation to COIN, holds nearly 835,000 shares of the stock.  

 

 

Cap-weighted plain vanilla ETFs are the top strategy holding COIN stock, with 33 funds. Actively managed ETFs are close behind, with 25 funds. Smart beta ETFs in the form of fundamentally weighted ETFs, multifactor ETFs and equally weighted ETFs round out the list, representing a combined total of 29 ETFs. 

 

 

Recent Developments 

Coinbase dropped 9% after announcing it planned to extend its hiring pause for the "foreseeable future" or "for as long as this macro-environment requires," wrote L.J. Brock, Coinbase's chief people officer, in a blog post last Thursday. 

The company stated it wouldn't make cuts in areas such as digital security and compliance, but that the pause would apply to any positions that don't support "mission critical" work, and that it could also include rescinding job offers. 

Coinbase, which has around 9 million users in the U.S., is one of the most popular trading platforms and digital wallets for cryptocurrency. Its trading price often reflects the cryptocurrency market as a whole. The rise in COIN stock is likely a reflection of weekend price increases for bitcoin, the largest and most well-known cryptocurrency.  

Bitcoin snapped its longest losing streak in history and climbed back over $31,000. Other popular cryptocurrencies such as ethereum are also up about 5% over the last five days. 

Cryptocurrencies as a whole, such as Coinbase shares, are still down significantly for the year. Bitcoin reached its all-time high of $68,906.48 in November 2021, but has lost 34.97% so far in 2022. 

COIN started the year trading at $251.05 but is currently priced at $68.67 per share. 

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