Top US cryptocurrency exchange Coinbase (COIN) has seen its share price rise in the aftermath of the collapse of the FTX exchange.
Coinbase shares opened at $47.53 and fell to $46.25, but after news broke that FTX had filed for bankruptcy, the stock jumped to $56.68, up more than 22%.
At the time of writing, COIN is trading at $56.22.
Kathy Woods’ ARK Investment Management exchange-traded fund (ETF) on Wednesday bought 237,675 shares of Coinbase, whose COIN was trading below $50, dropping to $45.61 per share.
Coinbase’s stock price has fallen in recent months due to overall market pressure. In September, analysts at banking giant JP Morgan cut their price target for Coinbase by 23%, from $78 to $60. This was below $61.88 at the time.
Coinbase is currently experiencing a surge in share price, but is far from reaching its all-time high of $426 in November 2021.
In an interview with CNBC this week, Coinbase head Brian Armstrong said: relief Their cryptocurrency exchange customers and investors have maintained sound financial health and have never faced liquidity issues like FTX.
“So for Coinbase, this is not a problem, and the reason is that we back our clients’ funds 1:1. Don’t take our word for it. We publish audited financial statements by big accounting firms, and when we went public in the U.S., we filed and registered an S-1 with the SEC to know exactly how our business operated. I showed them our audited financial report and they approved us for listing as a company.”
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