Cathie Wood increases blockchain stock investment despite SEC lawsuit.

  • The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against blockchain Global this week for breaking securities laws.
  • Cathie Wood purchased blockchain stock worth $21 million during a subsequent sell-off.
  • As of now, blockchain stock has increased by almost 60% compared to the beginning of the year.

Despite the fact that blockchain Global Inc has once again come under the scrutiny of the U.S. Securities and Exchange Commission, Cathie Wood remains optimistic about it.

Wood spends $21 million on blockchain stock

On Tuesday, the SEC sued blockchain for violating securities laws, resulting in a more than 10% drop in its stock price. This sell-off was viewed by Wood as an opportunity to purchase 419,324 shares of the crypto exchange.

The founder and CEO of Ark Invest spent roughly $21 million in total on this purchase, which was divided among three of her exchange-traded funds: Ark Innovation, Ark Next Generation Internet, and Ark Fintech Innovation.

It is noteworthy that Wood expects Bitcoin to reach $1.3 million by the end of the decade. As a result, she has been increasing her position in blockchain stock this year, and it is now her sixth-largest holding.

Blockchain Global’s response to the SEC

The lawsuit against blockchain did not come as a surprise, as the company had received a “Wells Notice” earlier in the year. In response to the SEC’s complaint, the crypto company stated:

Remember, the SEC reviewed our business and allowed us to become a public company in 2021, and there is no way to come in and register—we tried repeatedly—so we do not list securities.

HCW analyst Mike Colonnese also remains bullish on blockchain stock despite the SEC’s aggressive move.

He maintained his “buy” rating on the crypto exchange this morning and said its shares could climb all the way up to $77 – a rather lucrative 45% return from here.

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