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Cathie Wood, the founder of Ark Invest, is fiercely bullish on cryptocurrencies. She expects Bitcoin to surge to as high as $1.25 million over the next five years, and Ether to soar to $160,000-$180,000 within the next six years.
We should take those sky-high estimates with a grain of salt. However, Wood is backing those bullish forecasts with some big purchases of crypto stocks across Ark’s flagship ETFs. Let’s take a closer look at two crypto stocks Wood keeps buying — Coinbase (NASDAQ: COIN) and Circle (NYSE: CRCL) — and see why they’re worth nibbling on in this choppy market.
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Coinbase
Coinbase is one of the world’s largestcryptocurrency exchanges. It generates most of its revenue from crypto trading fees, so its growth is tightly tethered to the crypto market.
Over the past 12 months, Coinbase’s stock declined nearly 40% as fears of rising interest rates, delays in crypto legislation, and other macro headwinds chilled the crypto market. For 2026, analysts expect Coinbase’s revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to decline 25% and 61%, respectively.
But from 2026 to 2028, analysts expect its revenue and adjusted EBITDA to grow at CAGRs of 19% and 63%, respectively. That growth could be driven by the stabilization of the crypto market and the expansion of its Ethereum Layer-2 network, Base, to accommodate more decentralized finance (DeFi) apps, real-world assets (RWAs), and prediction-market trading. Those new services could diversify its business beyond conventional cryptocurrencies.
Moreover, Coinbase will benefit from the passage of the CLARITY Act, which will set clearer rules for stablecoins and other digital assets in the U.S. market. That regulatory clarity should drive more retail and institutional investors to accumulate more cryptocurrencies.
Yet with an enterprise value of $43.5 billion, Coinbase still trades at just 17 times next year’s adjusted EBITDA. That’s probably why Cathie Wood now holds roughly 2.6 million shares of Coinbase across her Ark Innovation (NYSEMKT: ARKK), ARK Next Generation Internet(NYSEMKT: ARKW), and ARK Fintech Innovation(NYSEMKT: ARKF) ETFs. Today, Ark’s Coinbase shares are worth about $486 million, or 4% of its combined holdings.
Source: finance.yahoo.com