Wood Doubles Down on Crypto Stocks Coinbase and Circle

Cathie Wood of ARK Invest is increasing her stake in two crypto stocks: Coinbase and Circle.

Wood, who expects Bitcoin to surge to $1.25 million over five years and Ether to soar to $160,000-$180,000 within six years, has been buying shares of Coinbase and Circle for Ark's flagship ETFs.

Coinbase is one of the world's largest cryptocurrency exchanges, with most of its revenue generated from crypto trading fees. Analysts expect its revenue and adjusted EBITDA to decline 25% and 61%, respectively, in 2026. However, from 2026 to 2028, they anticipate growth at CAGRs of 19% and 63%. Coinbase will benefit from the passage of the CLARITY Act, which will set clearer rules for stablecoins and other digital assets.

Circle mints USD Coin, the leading stablecoin in the U.S. and second-largest globally after Tether USD. Its revenue comes primarily from reserve income earned on cash and Treasuries held to back its stablecoins. Analysts expect Circle's revenue and adjusted EBITDA to grow at CAGRs of 19% and 25%, respectively, from 2025 to 2028.