The world’s largest semiconductor chip manufacturer, Intel, has made a minor bet in the future of the cryptocurrency market with an investment in the largest cryptocurrency exchange in the U.S, Coinbase.
Intel Discloses Stake In Coinbase Crypto Exchange
Intel disclosed on Friday that it purchased 3,014 COIN shares during its Q2 ending June 26. The shares are worth approximately $787,000 at the time of publication, based on Coinbase’s current share price of $261,24. Considering the chip giant’s $215 billion market capitalization, this purchase seems tiny. However, it marks Intel’s first substantial investment in the cryptoverse.
Barron’s notes that Intel might have bought the shares before Coinbase started trading publicly on the Nasdaq via a direct listing in April. But the stake in Coinbase is below the 5% threshold, which means the exchange was not obligated to report it before going public. Intel, however, had to disclose to the United States Securities and Exchange Commission (SEC) as it holds more than $100 million in investments as a publicly traded company.
The company, which has been a major player in computer processing for decades, won a patent for a system designed to improve the efficiency of bitcoin mining three years ago. Intel’s purchase of Coinbase stock appears to be a bet on the crypto market. This is because the exchange’s share value tends to move in tandem with crypto prices.
For instance, Coinbase’s stock took a hit in May right around the same time crypto assets crashed hard. The exchange’s stock is back on the rise as crypto bulls also attempt to push prices higher in recent weeks.
Coinbase announced its second-quarter earnings earlier this week, which exceeded the expectations of analysts. According to the report, Coinbase registered $1.9 billion in transaction revenue in Q2. The exchange’s stock price soared above $293 after this earnings report was revealed.
Other notable companies that have acquired a stake in Coinbase, include Cathie Wood’s ARK Invest which has been scooping up the exchange’s shares ever since it went public. ARK Investment Management now owns over 5.6 million Coinbase shares, while the ARK Innovation ETF owns over 4.2 million shares in the exchange, per CNN.
via ZyCrypto