Coinbase stock 60% higher following SEC charges

Coinbase (NASDAQ: COIN) has seen a substantial 60% surge in its stock price despite facing allegations from the US Securities and Exchange Commission (SEC) regarding the provision of unregistered securities.

Over the past few weeks, shares of Coinbase have increased, rising from around $50.56 in June to $81.21 in July. This jump represents a significant gain of approximately 50%. Year-to-date, the stock has demonstrated impressive growth, with an increase of around 141%.

Although Coinbase is currently embroiled in a securities violation lawsuit, the CEO of the company, Brian Armstrong, remains one of the most significant shareholders. While Armstrong has been gradually divesting some of his shares, he still holds a substantial ownership stake in Coinbase. On July 6, senior officials of Coinbase sold a total of 88,058 shares, generating approximately $6.9 million in revenue.

ARK Invest, the investment company led by Cathie Wood, purchased an additional 400,000 shares of Coinbase stock in early June and has chosen to retain its holdings thus far. Wood believes that as the price of Bitcoin continues to rise, Coinbase shares will follow suit. Notably, on June 19, Wood reaffirmed her conviction that Bitcoin will eventually reach a value of $1 million per coin.