According to an article in the business magazine Barron’s, Intel, the world’s biggest semiconductor chip maker, revealed on Friday that it holds a 3,014-share interest in cryptocurrency exchange Coinbase.
Intel Buys Coinbase Shares
In the article, Intel seems to have acquired the shares during its second quarter, which ended on June 26. However, Intel did not disclose holding shares before that date.
As per the quarterly report filed with the US Securities and Exchange Commission by the firm’s institutional investment managers, it paid $763,000 for 3,014 COIN shares.
In April, Coinbase launched a direct listing that allowed it to trade openly. However, according to Barron’s, Intel may have bought the shares before then since businesses going public are only required to disclose holdings in themselves of at least 5%.
On Tuesday, Coinbase announced excellent second-quarter earnings, but it cautioned that third-quarter user activity would decrease.
Intel Corporation first significant bitcoin investment
Intel Business is a global corporation and technology firm based in Silicon Valley in Santa Clara, California. It is the world’s biggest semiconductor chip maker in terms of sales and the creator of the x86 microprocessor family.
Given Intel’s market capitalization of $216 billion, the acquisition may seem insignificant. Nonetheless, it is the tech giant’s first significant bitcoin investment.
According to Barron’s, Intel was required to disclose the shares since it holds more than $100 million in publicly listed assets.
In 2018, a commonly utilized computer chip maker was also granted a patent for a processor that allows for energy-efficient Bitcoin mining.
Before that, Intel partnered with PokitDok, a software development platform, to use blockchain technology.
In 2017, the Santa Clara-based firm teamed up with Ledger, a French hardware wallet manufacturer, to create a new method for securely storing bitcoin.
Coinbase’s stock is making a comeback
Coinbase’s stock surged to $294 on August 11, its highest level since May 12.
Despite Wall Street’s gloomy prognosis, Coinbase managed to exceed analysts’ expectations with higher-than-expected transaction-based revenue.
Ark Investment Management continued to increase their Coinbase holdings throughout the market downturn, according to U.Today.
COIN shares are now valued at $172 million in the ARK Fintech Innovation ETF.
