Blockchain.com co-founder Nicolas Cary has responded to Cathie Wood after the investor criticized the cryptocurrency business by questioning its valuation and management.
“If you look at others like Blockchain.com, their valuation over the past year has tripled, while Coinbase in our portfolios is down 40%. That doesn’t make sense,” Wood, CEO of Ark Invest, told CNBC on Thursday. Tuesday.
“Coinbase is a much better, well-diversified company, right? And I’d say it’s a better managed company.”
Blockchain.com is a cryptocurrency trading platform and wallet, as well as a direct rival to Coinbase. Blockchain.com is still a private company. Cathie Wood’s Ark Invest funds hold shares of Coinbase, which is listed in the United States. Coinbase shares are down more than 50% over the past year.
Wood’s comments came in the context of a response about tech stock valuations as interest rates rise. He talked about the difference between public and private market valuations of technology companies.
“This (Blockchain.com) has tripled in a year and Coinbase is down 40%. Does that make any sense to you? I think the private market has more of a right than the public markets. And the reasons why the markets public authorities are not. What is efficient is that they are not investigating,” Wood said.
Cary, co-founder and vice president of Blockchain.com, responded to Wood’s comments.
“Well, there’s definitely a difference between the private markets and the public markets, and Cathie’s position has shrunk quite a bit. I think what’s interesting to note is that yes, our company’s valuation tripled, and that was in the context of a global pandemic, a crash in tech stocks and the outbreak of a ground war in Europe,” Cary told CNBC in an interview on Wednesday.
“Coinbase’s position is not well understood in the market…in the long term, although I think both companies have many advantages, and our recent investors are very excited about our future. We have been working very hard to build an income composition that is generating better quarterly results”.
When pressed to respond to Wood’s specific comments on Blockchain.com’s management, Cary said, “I think the market is pretty clear: their position is down 50% and ours is up 3x, so …”
Cary said Blockchain.com is taking a “patient approach” to going public and is currently “well capitalized.”
“Obviously tech stocks have taken a hit, Cathie’s positions are down all over the place, we’re going to take our time with that. We need to see public markets understand crypto markets better,” Cary said.