Coinbase did great in the second quarter of the year and is receiving more investment from companies
Leading chip maker Intel has reportedly acquired stakes in Coinbase, one of the world’s leading cryptocurrency exchanges. The acquisition follows a strong performance from the crypto exchange in the second quarter of 2021.
According to a report by Barron’s, Intel announced on Friday that it currently held 3,014 shares of Coinbase (COIN) as of the end of June. The report added that the shares were acquired in the second quarter of the year as Intel did not disclose COIN as part of its holdings in the first quarter.
However, there is a possibility that Intel acquired the shares much earlier. Barrons wrote: “It is possible that Intel invested in Coinbase before the shares were publicly traded. Regulatory filings only require companies going public to disclose to investors with a stake of 5% or more.“
Coinbase, one of the leading digital currency trading platforms in the United States, became a publicly traded company in April after listing on the NASDAQ stock exchange. The exchange trades under the ticker COIN and delivered a strong Q2.
The cryptocurrency exchange recorded over $ 2 billion in revenue in the second quarter, with $ 1.6 billion in profit. In the same quarter, Coinbase processed a trading volume of over $ 400 billion.
The rise in Bitcoin, Ether and other cryptocurrencies towards the end of the second quarter could have contributed to Coinbase’s strong performance.
Coinbase’s share price has underperformed since the company was listed. On opening day, April 14, COIN began trading at $ 381 and quickly rose to its all-time high of $ 429. However, it has since lost nearly 50% of its value, closing Friday at $ 264 per share. Coinbase currently has a market cap of $ 54.51 billion.
A spike in cryptocurrency prices could help Coinbase do even better in the third quarter of the year. This is due to the increase in trading activity that accompanies a market rally.