Shares of Coinbase Global Inc (NASDAQ: COIN) have tanked nearly 30% since November 9th, but the underperformance was not sufficient to make Kevin O’Leary change his bullish thesis on the stock.
O’Leary added to his position in Coinbase
According to Mr Wonderful, the selloff was partially attributed to a “tussle” with the SEC that disabled Coinbase from launching its “lend” product in the U.S. Revealing to have bought more of the stock on recent weakness, he said on CNBC’s “Halftime Report”:
The play on Coinbase is crypto infrastructure. They’ll go to other geographies to put out their lend product because they’re a global platform. And I think that’s the beginning of the tonal change that’s going to occur in our own country.
The “lend” product is about staking stablecoin, which is allowed in other jurisdictions, including Switzerland, Canada, and Australia. For anyone interested in investing in the crypto space, O’Leary added, Coinbase is a great pick to diversify the portfolio.
Sechan: make ‘thoughtful’ bets in crypto
Volatility is the top reason that puts off investors when it comes to putting their money in the crypto space. A simple solution for that, as per NewEdge Wealth’s Rob Sechan, is to go small.
I think you got to bet on the crypto ecosystem. It’s attracting some of the brightest minds in finance. This is game-changing, and I think it will disrupt the financial system. So, we are investing in crypto, we’re doing it thoughtfully, and I think other investors should do the same.
Something like 5.0% in crypto, he added, wouldn’t hurt even if it goes wrong. In its latest reported quarter, Coinbase said revenue was down over 40% sequentially.
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